PAYROLL GIVING - A GUIDE FOR EMPLOYERS
Give more
for less – Give through the
payroll
Good news for small employers!
In January 2005 the
Government set up a new Payroll Giving scheme, which will reward small
and medium sized enterprises that establish Payroll Giving with a one
off grant of up to £500.
This
initiative is specifically designed to encourage small and medium sized
businesses, like yours, to make it easier for your staff and colleagues to
give to charity in a simple tax-efficient way.
Currently
only 1 in 5 UK employees are able to participate in a Payroll Giving scheme,
but 1 in 3 would like the opportunity to take part in this way. (Source:
KPMG research).
The Phyllis
Tuckwell Hospice, in common with many other charities, large and small, is
keen to help you to start up a Payroll Giving scheme and to encourage
donations using this scheme. Through Payroll Giving, the Phyllis Tuckwell
Hospice can be assured of a regular income, which is used to cover
day-to-day running costs – it’s like having a salary for the Hospice!
Grants available
To set up Payroll Giving at your business, you will need to
make a small adjustment to your payroll procedures and you will need to have
an agreement with one of the seven Payroll Giving agencies on the attached
list.
You
cannot pass on your employees’ donations directly to a charity.
Grants are
given to companies to offset any cost they may incur in setting up a
scheme. In practice, many businesses find that there is very little or no
cost involved. In fact, some companies even choose to give the grant
straight to charity!
The grant is
awarded only when the first donation is made through the payroll and is
scaled according to the number of employees in your business:
1-199
employees £300
200-249
employees £400
250-499
employees £500
Matched giving from the taxman
As an added incentive, the Inland Revenue will match pound for pound the
first £10 of each employee’s monthly donation for a period of six months.
Some employers continue this matching for another 6 months or longer.
What to do now
Select an agency from this list:
Download and print a list of UK Payroll Giving Agencies (PDF)
(commission payments made to the agency will be taken from the charity
donation, so this will not incur an extra cost to the business, although it
will reduce the amount that the Hospice receives)
Instruct
your accounts or payroll department to employ a payroll giving agency, and
either use our form or request forms for your employees to fill in.
Complete the
enclosed grant application form and return to your chosen agency
For more
information: call the payroll giving grants hotline on 0845 602 6786
or visit the website
www.payrollgivinggrants.org.uk.
Why does the Phyllis Tuckwell Hospice need your help?
The Phyllis Tuckwell Hospice is your local hospice, providing care for
patients and their families facing a life limiting illness, such as cancer
or motor neurone disease.
The Hospice costs £3.5
million a year or £10,000 a day to run. And over 80% of these costs are
raised every year through the support of local businesses, organisations and
individuals like you.
The Phyllis
Tuckwell Hospice’s future is in your hands – thank you for all your support.
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