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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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