What is Payroll Giving?
Payroll Giving, also known as Give As You Earn, means you can donate to CLAPA direct from your gross salary (before tax is deducted) – giving immediate tax relief on your donations. For example, if you donate £10 it will only cost you £8; the taxman pays the rest!
Anyone who pays UK tax through PAYE can use Payroll Giving.
How to donate through Payroll Giving
- Speak to your payroll team to see if your company offers Payroll Giving. To sign up they’ll send you a short application form to complete.
- You will need to give them CLAPA’s charity number. Our registered charity number is 1108160.
- Choose how much you wish to donate – from a minimum amount of £1 per week or £5 per month.
- If your employer doesn’t have a Payroll Giving scheme, ask them to start one by registering with a Payroll Giving Agency. A list of agencies is available on the HM Revenue and Customs website
- You can show your employer this useful guide to Payroll Giving for Businesses, by the Chartered Institute of Fundraising.
How does Payroll Giving work?
- If you pay the basic 20 per cent tax rate (for every £1 you earn above the standard personal allowance 20p is paid in tax) and pledge £10 per month to CLAPA we receive £10. But only £8 will be deducted from your net pay.
- If you pay income tax at the higher rate of 40 per cent and pledge £10 per month just £6 will be deducted from your net pay. At the highest rate of 45 per cent only £5.50 is deducted.
- Income tax on donations is paid to CLAPA instead of HMRC. For more information visit the HM Revenue and Customs website
Payroll Giving vs Gift Aid
- Payroll Giving donations come directly from your gross pay, before income tax is deducted, and the charity receives the full gross amount of the donation. Therefore, the charity receives more, and you pay less income tax.
- Donations made with Gift Aid come from your salary after income tax has been deducted. The charity receives your donation and can then claim back Gift Aid from HMRC – this is the tax that you paid on that donation amount.
- Gift Aid is capped at 25%, regardless of what tax band you fall into. This means it is more efficient for higher rate taxpayers to donate through Payroll Giving than Gift Aid, because charities are unable to claim back tax above the basic rate through the Gift Aid scheme
How much can I donate through Payroll Giving?
You can choose the amount you want to donate, change the amount you give, and you can pause or stop your donations whenever you want to.
Benefits of Payroll Giving for you
- Be part of a community. We’re supporting the UK Cleft Community and you can be part of that too.
- Tax-efficient. Donating through Payroll Giving costs you less to donate the same amount, compared to giving after tax.
- Flexibility. Donations through Payroll Giving can be stopped or changed at any time, and you can support multiple charities.
- Quick and easy. Payroll Giving is a convenient and simple way to support causes that matter to you.
- Safe and secure. No need to share your bank details and you can choose how you want to be contacted.
I've been donating to CLAPA through payroll giving for a few years now, and I really value how simple and effective it is. The donation comes straight out of my payslip, so I don’t have to think about it each month—and because it’s taken pre-tax, it actually costs me less than donating in other ways. It’s a win-win for both me and CLAPA! An extra bonus is that my employer matches my donation each month, which doubles the impact—so it’s definitely worth checking if your workplace offers something similar.Antonia, Payroll Giver
Benefits of Payroll Giving for your employer
- Recognition for your efforts. Get noticed through the Payroll Giving Quality Mark and National Payroll Giving Excellence Awards.
- Low effort, big reward. Increase your charitable giving with minimal set up and running costs, and administrative requirements.
- Employee engagement. Boosts employee morale and enables them to feel supported in the causes they care about.
The impact of Payroll Giving
A regular contribution through your payroll provides us with a reliable income so we can plan for the future effectively. Your support allows us to continue to provide the best services possible for people affected by cleft in the UK.