A new voluntary scheme called payroll giving will be available from 7 January 2010. It’s an easy way for employees to support a good cause. Employers can choose whether to set up a payroll giving scheme in their workplace, and employees can choose whether they want to participate.
Payroll giving enables donations to go directly from a person’s pay to a chosen community organisation. The scheme will be administered through the PAYE tax system, so people whose employers sign up for the scheme will receive the tax benefits of their donations each payday, without having to present donation receipts or wait to claim at the end of a tax year.
Information packs have been distributed to employers during November 2009. Every employer will receive the letter and brochure explaining the basic changes. Employers with five or more staff will receive a CD-Rom including the Payroll Giving Guide (IR617) from Inland Revenue and a selection of promotional posters.
Guidance is available on the Inland Revenue website and from the Office for the Community and Voluntary Sector website, which also includes some tips for donee organisations and charities that may want to receive donations via payroll giving.