UK taxpayers who are paid under PAYE (Pay As You Earn) can maximise regular donations to the University through the Payroll Giving scheme. Gifts made through Payroll Giving are taken directly from the gross pay, giving the benefactor immediate tax relief at the highest rate of tax for which they qualify.
Why give through payroll?
Payroll giving is an easy, tax-effective way to give, so it costs you less to give more. Payroll giving provides a regular, reliable income stream which will allow the university to plan ahead and budget for the future. Another important factor is we won't have to spend money on raising money if we can depend upon your gift being received automatically.
How the tax relief works
Unlike Gift Aid, all the tax relief is given to the donor. The donation is simply a pre-tax deduction, reducing the amount of income tax taken from the donor's pay. This means the donor gets immediate tax relief at their highest rate of tax. So a £10 donation would generate tax relief of £4 for higher rate tax payers and £2.20 for basic rate tax payers.
See example table below
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Employee donation received by charity
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Basic rate taxpayer (22%) tax)
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Higher rate taxpayer 40% tax)
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Tax Relief
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Cost to donor
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Tax relief
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Cost to donor
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£5
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£1.10
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£3.90
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£2.00
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£3.00
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£10
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£2.20
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£7.80
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£4.00
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£6.00
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£20
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£4.40
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£15.60
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£8.00
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£12.00
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£100
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£22.00
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£78.00
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£40.00
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£60.00
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What do I need to do?
If you are interested in this method of giving you will need to request an application form from your employer, detailing your wishes to donate to the University of Bolton.||
For non- employees of the university you can obtain a Payroll Giving Form from your Payroll or Personnel Department. Your employer will forward your completed form to their Payroll Giving Agency (PGA) and deduct from your pre-tax salary the total amount you want to give. Your donation is forwarded monthly to the Payroll Giving Agency and they then distribute the gift each month to the University.
Employees of the University can click to complete the PayrollGivingForm|| Giving Form. Once you have pledged your tax effective donation, please forward your completed form to Paul Clarke, Finance Department at the University. The name of the Payroll Giving Agency (PGA) the University of Bolton uses is Charities Trust.
What does my employer need to do?
If your employer does not already have a Payroll Giving scheme in place, don't worry – it's quick and easy to set up. Employers simply need to sign a contract with a Payroll Giving Agency. This is a legal requirement and provides an audit trail for HM Revenue and Customs (HMRC) because you are getting tax relief on your gift.
Can I stop giving?
Payroll Giving is a voluntary donation and you can stop at any time. Simply tell your employer’s payroll department
Will administration charges be deducted from my donations?
Most PGAs make a small charge which they deduct from your donations before distributing them to charity. The charge is nominal and simply covers their costs. All Payroll Giving Agencies are registered charities and they make no profit from administering Payroll Giving donations. An increasing number of employers pay the Payroll Giving Agencies charges so that the full amount of your donation can go to charity.
How long will it be before my donation reaches the University of Bolton
Once your donation has been deducted from your salary your employer must forward it to the Payroll Giving Agency each month. The Payroll Giving Agency then has 60 days to distribute the gift to the University. Most Payroll Giving Agency distribute funds within one month. Once we have received your donation we will send an acknowledgment letter to you.
Can I change the amount I give?
Yes, although to keep administration costs down your employer may limit the number of times you can change the amount of your donation to once or twice a year.