Payroll Giving

The Inland Revenue reports that £;86 million was given to charities in 2002/03 by some 500,000 employees. The level of donations has been increasing year-on-year since the Government started its promotion of payroll giving schemes in 1999, including topping up donations by 10%.

However, the number of employees who have access to schemes has remained static since 2000, at around one in five.
(Source: www.inlandrevenue.gov.uk/payrollgiving)
...back to 11 July 2003

Payroll Giving

The Revenue's three-year campaign to promote giving to charity through the payroll has reached its target a year early. The target was to double the amount of money being given in this way to £;60 million by April 2003. In the year to April 2002, over half a million employees donated a total of £;72.5 million through Payroll Giving. Since the £;1,200 ceiling on annual giving was removed in April 2000, the number of employees giving over that amount each year has increased to 8,300.

Under the Revenue's special promotional arrangements, donations made before April 2003 will be increased by 10% from Government funds. The effect is that a charity can receive £;10 at a cost of £;7.36 to a basic rate taxpayer, or £;5.66 to a higher rate taxpayer. The address of the section of the Revenue's website that is dedicated to payroll giving is www.inlandrevenue.gov.uk/payrollgiving/index.htm .
Payroll Briefing 4 - 18 July 2002

Payroll Giving increases

The government's promotion of payroll giving schemes and the additional 10% added to donations has made a significant difference to the amounts given to charities since April 2000. According to figures published by the Revenue, some £;55 million was donated and enjoyed tax relief in the year to April 2001, compared to £;37 million in the previous year. Nearly 1,500 employers set up schemes for the first time. Over 550,000 employees made donations, including some 6,500 who donated in excess of £;1,200, the annual limit on donations prior to April 2000.

As a reminder of the attraction of the scheme, donations are deducted from pay before PAYE tax is calculated. A £;10 gift costs donors £;7.80 if they pay tax at the basic rate, or £;6 at the higher rate. After the government's 10% is added, the charity receives £;11. Costs incurred in running the scheme can be offset against profits for tax purposes. More information can be found at www.inlandrevenue.gov.uk/payrollgiving or by phoning 0845 604 9000.

Inland Revenue press release 80 of 8 May 2001 - Payroll Briefing 202 - 24 May 2001