Chapter 4 - Payroll Giving

4.1 Introduction

4.1.1 Payroll Giving provides tax relief at source for individuals who give to charity by direct deduction from their pay. Pensioners can also use Payroll Giving to give to charity by direct deduction from their occupational pension, but, for simplicity, we will refer in this guidance only to employees.

4.1.2 Once an employee has signed up to the scheme the employer simply deducts the relevant amount from the employee's pay before deducting tax under PAYE and sends the payment to the agency charity.

4.1.3 Any employee whose pay is subject to PAYE and whose employer has agreed to run an approved scheme (and made all the necessary arrangements) can take part in the scheme.

4.1.4 A number of improvements were made to the scheme with effect from 6 April 2000.

• There are no limits on the amounts that can be given.
• Donations and the supplement must now be distributed by the agency charity to the end-recipient charity within 60 days of receipt from the employer.