Empower the next generation from your desk: How Payroll Giving powers Action Tutoring
February is Payroll Giving Month. It’s a time for charities, payroll giving agencies and professional funding organisations to come together to raise awareness of the scheme amongst employers, employees and charities. Indeed, Payroll Giving is the easiest and quickest way to support pupils on our programmes and our work.
At Action Tutoring, we believe that no child’s life chances should be limited by their background. We support Payroll Giving as an easy and efficient way to help us change the lives of under-resourced young people across the country through high-impact maths and English tutoring. Even a small monthly contribution enables us to plan ahead and adds up to make a real difference in a child’s life.
Payroll Giving explained
Payroll Giving (sometimes known as Give as You Earn) is an easy and tax-efficient way of making regular donations to the causes you care about straight from your gross pay. All UK registered charities are eligible to receive donations via the scheme.
When you donate to a charity through Payroll Giving, your donation is deducted from your gross salary before income tax is applied. This means you pay less tax as it is only applied to the remaining amount. Charities also do not need to claim Gift Aid on donations made from gross pay. Payroll Giving is especially efficient for medium and higher rate taxpayers who wish to make larger donations at a lower cost without the added hassle of having to tell HMRC about their giving to adjust their personal allowance.
For example, those on a 40% tax rate could reclaim £8 from their tax bill on a £20 pledge, effectively reducing their net contribution to £12. Whether your rate of tax is higher (45% allows £9 tax relief from £20) or lower (20% allows £4 tax relief from £20), a donation through Payroll Giving will go further at less of a cost to you.
Please note that Action Tutoring are not tax experts and cannot provide tax advice. Anyone considering donating via Payroll Giving should check their tax position and consider seeking professional advice.
Payroll Giving benefits
- It’s tax free.
Payroll Giving is deducted from your pay before tax, so your gift will go even further. Donating to charities tax-free directly through your salary is the most tax-efficient way to give.
Please note, Action Tutoring are not tax experts and cannot provide tax advice.
- It’s effortless.
It’s easy to set up and the donation is automatically taken from your gross income every time you’re paid. You can increase or cancel your donation at any time through your payroll department.
- Your donations stop automatically if you change jobs or retire.
You don’t need to contact your organisation or Payroll Giving to let them know when you change jobs or retire. You’ll be able to set up Payroll Giving again if your new employer takes part in the scheme. If you’re retiring, your employer may be able to continue your donation through your pension.
- Your employer may match your donation.
Many workplaces offer to match their employees’ donations. Check with your employer to see if they can make your donation go even further.
How to get involved
Regular donations are vital for the futures of the young people we support.
You can set up Payroll Giving by following these three easy steps:
- Check your employer is signed up to a Payroll Giving Agency, like the Charities Aid Foundation.
- Ask your payroll team to set you up on Payroll Giving. It’s as simple as ticking a box on your payroll system.
- Choose Action Tutoring as your charity of choice and set the amount you want to give each payday. No matter how big or small, your donation will make a difference.
