Employer how to guide
Signing up for payroll giving in support of Naomi House
If your company does not currently have a Payroll Giving scheme, don’t worry – it’s quick and easy to set up. Read on to find out how.
- What is Payroll Giving?
- What are the business benefits?
- What are the benefits to charities?
- What are the benefits to employees?
- How do I sign up?
- How can I get a Payroll Giving Quality Mark Award?
- What do my employees need to do?
- What will this mean for my finance/payroll staff?
- What else do I need to know?
What is Payroll Giving?
Payroll Giving is a scheme that enables your employees to give to Naomi House straight from their gross salary (before tax is deducted). Your employees benefit because they get tax relief on the donations straight away at their top rate of tax, meaning that their donations cost them less.
For example, it would only cost an employee who pays tax at the basic rate of 20 per cent £8 to make a £10 donation to their charity. And it would only cost an employee who pays tax at the higher rate of 40 per cent £6 to make the same sized donation.
What are the business benefits?
Quick and easy to set-up and administer, Payroll Giving is a great way for you to demonstrate commitment to the causes that your employees care about. It can also aid retention and recruitment of staff, and enable you to generate a sustainable income for charities like Naomi House.
What are the benefits to charities?
Payroll Giving provides charities with regular, reliable donations that allow them to plan ahead and budget for the future. By signing up to Payroll Giving, you can generate a vital income stream for Naomi House.
What are the benefits to employees?
Payroll Giving is an easy, tax-efficient way to give to charity - so it costs employees less to give more. The system is easy to opt in and out of, giving donors full control over their giving.
How do I sign up?
To set up a Payroll Giving scheme, all you have to do is sign up with a Payroll Giving Agency who will transmit the donations on your behalf – it’s as easy as that. For a list of HM Revenue and Customs approved Payroll Giving Agencies just visit their website.
How can I get a Payroll Giving Quality Mark Award?
By running regular promotions about your Payroll Giving scheme to maintain awareness and continuing to recruit new donors, your company could be recognised by the Payroll Giving Quality Mark which rewards employers for making Payroll Giving available to their staff. A Gold Award is achieved by 10% employee participation in Payroll Giving with their employers support. To find out more visit the Payroll Giving Centre.
What do my employees need to do?
All your employees need to do is ask your payroll department to deduct regular charitable donations from their salary by filling out a simple application form, outlining how much they would like to give and to which charities. A sample form for employees choosing to give to Naomi House is available here.
What will this mean for my finance/payroll staff?
All modern payroll systems can facilitate Payroll Giving, usually as a simple tick box option. Your payroll staff will deduct the amount, as per any other pre-tax deduction (after National Insurance, but before tax) and forward it to your Payroll Giving Agency (PGA) who will distribute the monies to the chosen charities.
There are no tax forms for them to complete and record keeping is straightforward. Your selected PGA will supply you with all the necessary help and advice to ensure that your scheme runs smoothly from the start.
What else do I need to know?
For more information on setting up and promoting Payroll Giving please visit
To find out more about the work of Naomi House, request a member of our team to come and speak to your employees about payroll giving to Naomi House or to find out how your business can support the hospice in other ways please contact us, or call the Fundraising Office on 01962 843513
