Frequently Asked Questions
Charities Trust is committed to supporting Companies by finding solutions which will raise awareness to the most tax effective ways in which employers and employees can support UK charities. If your company has an idea or needs a solution for charitable giving, Charities Trust will have the solution or create a solution, at little or no cost to your company and especially not to the charities you and your employees wish to support.Questions
Can employees choose who they want to donate to?
Why do I have to use a Payroll Giving Agency?
What is the best way to promote Payroll Giving?
Why should I offer Payroll Giving to my employees?
Is there a limit on how little or how much an employee can give?
Can anyone who works in my business join the scheme?
What records will I need to keep?
When will donations stop receiving the SME Grant Matched Funding?
Answers
Can employees choose who they want to donate to?
Yes, and it’s not only registered charities that are open to donations. They can choose to give to any organisation recognised by the Inland Revenue (HMRC) as charitable. This includes places of worship, hospitals (non Private), school groups, Scouts and Girl Guides, to name a few.
If you are in any doubt as to whether a particular organisation is eligible, please contact Charities Trust 087070 87878 or info@charitiestrust.orgDo donors have to give to the same charity every month? What happens if they want to respond to an emergency appeal?
If they don’t want to elect a charity in advance they can open a voucher account. A voucher account allows tax-free donations to be paid into an account. The donor then receives a book of vouchers, similar to a cheque book, to complete to any charity or appeal whenever they wish. Voucher accounts give the donor greater flexibility. There is a minimum donation required each month of £10.
Some employers also encourage staff to make one off donations e.g. Christmas pledges or to support a Charity of the Year or a particular appeal. Contact Charities Trust if you would like more information about this. 0870 708 7878 or info@charitiestrust.orgWhy do I have to use a Payroll Giving Agency?
As the donation will be a tax efficient scheme, employers have to enter into an agreement with a Payroll Giving Agency who then register the employer with the Inland Revenue (HMRC) and liaise with the Inland Revenue (HMRC)on all aspects of payroll giving.
If you make post tax payroll giving deductions your employees are missing out on the tax advantages. Contact Julie McAdam at Charities Trust if you would like to convert your post tax scheme to a tax effective pre tax scheme. Call 087070 87878 or email julie.mcadam@charitiestrust.orgCan employers contribute?
Some of the most successful payroll giving schemes are those where employers match donations given by their employees.
This can be done in various ways and at various levels – contact Julie McAdam to discuss options for your company scheme. julie.mcadam@charitiestrust.org or 087070 87878.However this may not be possible particularly for public sector organisations and there are many other ways to ensure the success of your scheme.
How much does it cost?
There are no costs to the employer. All modern payroll systems can make charity deductions.
Charities Trust make a small administration charge of only 25p per donor which covers our running costs. This is deducted from the monies sent to the charities each month. Payroll giving is a very cost effective way for charities to raise regular donations and Charities Trust are the most cost effective payroll giving agency. As a charity in our own right any surplus funds left from these administration charges once we have covered our costs is used to increase payroll giving or is donated back to the charitable sector.Some employers choose to pay the administration fees on behalf of their employees – this is an excellent way to show commitment to the scheme and encourages participation.
What is the best way to promote Payroll Giving?
What is the best way to promote and market Payroll Giving to my employees?
There are many ways in which payroll giving can be promoted. These include:
*Staff newsletters/magazines
*Corporate intranet
*E mails
*Leaflets
*Tray liners for the staff restaurant
*Road shows
*Using Professional Fundraising Organisations (PFO’s) to talk directly to your staff. For a list of Inalnd Revenue approved PFO's click here: PFO's
*Messages on pay slips
*Regular updates and feedback
*Information in induction packs for new starters
*Via Community Action Teams
*Presentations from charity representatives
Charities Trust specialise in the promotion and marketing of payroll giving and can advise and work with you to devise the best way to launch and promote your scheme. We would be happy to send you some examples of successful campaigns we have run.
Contact Jason Doherty to discuss the best ways to encourage your staff to take up payroll giving. 0151 284 2822 or jason.doherty@charitiestrust.org
Why is now the time to start?
If you do not already offer Payroll Giving to your employees, there has never been a better time to start. And if you already run a scheme there has never been a better time to promote it.
Payroll Giving is becoming integral to any companies commitment to the community and provides the opportunity for employees to give tax effectively to their chosen charity or good cause.
The new Payroll Giving Quality Mark, is now available to any company who has a scheme in place, and the quality mark can be used on corporate letterheads, web site pages, etc. For more information visit: Quality Mark
Why should I offer Payroll Giving to my employees?
Running a Payroll Giving scheme can be good for business. It shows that you are committed to working in partnership with the community – something that is increasingly important to customers, staff and shareholders.
It shows that you care about your staff – offering them the benefits of Payroll Giving can help build better employee relations and attract the right people to come and work for you.It is easy and inexpensive to run, and you get a deduction against your profits for any costs you may incur.
It can also help bolster the funds of your Charity of the Year.
Charities Trust can always advise on the best ways to implement and promote the scheme in your business and are happy to answer any queries from you, your employees or charities.
Is there a limit on how little or how much an employee can give?
A minimum donation of 25p per week but their is no upper limit. As an employer you can also opt to pay the administration fee on behalf of the donor. Charities Trust can calculate this charge on a sliding scale for you.
Can anyone who works in my business join the scheme?
Any employee or pensioner from whose pay or pension you deduct Pay As You Earn - couldn’t be easier.
What records will I need to keep?
You will need to keep:
A copy of your contract with the Payroll Giving Agency – Charities TrustThe forms completed by your employees authorising you to make deductions from their pay
A record of the deductions made from each employee’s pay
Is it complicated?
No.
Most of the administration is carried out by the Payroll Giving Agency ‘Charities Trust’. All modern payroll systems can handle Payroll Giving. There are no tax forms to complete and the records you need to keep are straightforward.When will donations stop receiving the SME Grant Matched Funding?
The match funding for SME employees finishes in March 2007, any new donor signing up to Payroll Giving from 1st February 2007, and dependent on whether the employer has sent the forms and donations for processing at the end of February, will not receive the match funding. The sooner employees sign up to Payroll Giving the quicker their nominated charity or good cause will benefit from this uplift in donations - encourage them to sign up today!
Promoting Payroll Giving to employees
Whilst providing a payroll giving service to your employees is one thing, encouraging them to sign Read more…
Giving Payroll Giving - The Xtra Factor
It is 20 years since Payroll Giving was introduced to employees as a tax effective way to give from Read more…
