Under ITEPA03/S713 employees may authorise their employers to
deduct gifts for charities from their pay. The employers must pay
the gifts over to an agency approved by HMRC. The employer's own
expenses of operating the scheme are allowable deductions.
Where the employer voluntarily makes other payments to the
approved agency to meet part of the agency expenses, the payment by
the employer, to the extent that it would not otherwise be
allowable, is relieved by virtue of ICTA88/S86A. This section
applies to expenditure incurred on or after 16 March 1993 and
provides for such ’relevant expenditure' to be deducted in
computing the taxable profits of the employer's trade or
profession.
