A payroll giving scheme is an easy, tax-efficient way of donating through your salary.
Payroll Giving, also known as Give As You Earn, is an easy, and tax effective way to make a regular donations, so it costs you less to give more.
It enables you to give to The Hygiene Bank straight from your gross salary (before tax is deducted) giving immediate tax relief on your donations. Anyone whose pay is taxed through PAYE can donate through Payroll Giving.
Check with your HR department to make sure that your company offers Payroll Giving. If they do, they will arrange your donation through your salary for you.
If your circumstances change and you no longer wish to donate simply tell your employer. If you change your job, your donations will not be transferred to your new employer, you will need to start a new Payroll Giving scheme.
Basic rate tax payers
If you pay the basic tax rate, for every £1 that you earn, 20p is paid in tax. If you pledge £10 a month, we receive the full amount but only £8 will be deducted from your net pay.
Higher rate tax payer
If you pay income tax at the higher rate of 40%, if you pledge £10 a month, only £6 would be deducted from your net pay, and at the super rate of 50%, only £5 would be deducted.
It is more efficient for higher rate taxpayers to donate through Payroll Giving than Gift Aid as charities are unable to claim back tax above the basic rate through the Gift Aid scheme.
The Income Tax applicable to the donation is paid to The Hygiene Bank instead of the Inland Revenue.