What is Payroll Giving? 

Payroll Giving, also known as Give as you Earn, is a simple, flexible and tax effective method of charitable giving that allows your employees to donate to Katharine House by direct deduction from their salary. 

It’s simple to set up and enables your staff to give on a regular basis through their pay – and the money they donate is tax free – so everyone wins! 

The tax relief that your employees get through Payroll Giving depends on the rate of tax they pay. For every £1 donated, your employee pays 80p if they’re a basic rate taxpayer or 60p if they’re a higher rate taxpayer. 

Katharine House receives  

Cost to standard rate taxpayer 

Cost to higher rate taxpayer 

£5

£4

£3

£10 

£8

£6  

£50

£40  

£30

Benefits to your organisation 

  • Gives your employees the opportunity to donate to their chosen charity in a simple and tax effective way. 
  • Improves your business’s charitable giving and social responsibility with minimal effort or cost.  
  • Enables you to measure the level of charitable giving that your company has helped achieve.
  • Offers an opportunity to gain recognition from your industry peers by attaining a Quality Mark Award, a government award given to organisations who implement Payroll Giving. 

Benefits to Katharine House Hospice 

  • Regular donations, such as Payroll Giving, are reliable sources of income for the hospice and allow us to make solid plans for the future, helping to ensure we can be there for everyone who needs us. 
  • Payroll Giving donations are received quickly without the extra burden of having to claim Gift Aid from the government.  

How to set up Payroll Giving  

You will need to register your business with a Payroll Giving Agency (PGA), which will process your employees' donations and distribute the money to their chosen charities. By law, Payroll Giving must be administered through an Inland Revenue registered PGA and they will advise you on the best way to set up the scheme. More information can be found on GOV.UK, including a list of PGAs.

Promoting the scheme to your employees 

  • Let everyone know about the scheme – nominate a member of staff to be your Payroll Giving champion. 
  • Include Payroll Giving in your staff induction programme. 
  • Demonstrate your dedication – lead by example and encourage senior leaders to publicly sign up to Payroll Giving and consider matching all donations. 
  • Aim for a Gold Quality Mark showing that 10% of your staff have signed up to Payroll Giving. 
  • Thank your employees. We would be happy to give regular updates on the impact of donations. 

Get in touch 

If you would like to find out more about Payroll Giving and the impact this could have, please contact us by emailing [email protected] or calling 01295 816484. 

For the employee  

To start making a regular donation to Katharine House through your salary, simply speak to your payroll department and they’ll be able to help set this up for you. Once they have processed your request for your chosen amount, you don’t need to do anything else and your gift will be made directly from your salary to the hospice each payday.  

You can change your donation amount or cancel your gift to us at any time by speaking to your payroll department.  

If you wish to gift a regular income from your pension, your pension provider may be able to set up a similar direct payment to Katharine House Hospice. 

If your employer is not already registered with a Payroll Giving Agency, why not suggest they sign up? They can find out more information on GOV.UK or you could ask your employer to contact us at [email protected]