What is Tax Effective Giving?

Tax effective giving is a vehicle for giving monies to charities in the most tax effective way. There are two ways of doing this:

• Pre Tax giving or Payroll Giving is a flexible scheme that enables employees to make charitable donations straight from their gross salary (before tax has been deducted). Therefore, for a basic rate taxpayer wanting to give a £10 donation, it will only cost £8 or just £6 for higher rate tax payers
  
  
• Post tax giving is a way of giving monies to charities by way of standing orders or direct debits. The government allows the charities to claim the tax back and this is called gift aid.

Payroll Giving

As the donation will be a tax efficient scheme, employers have to enter into an agreement with a Payroll Giving Agency who then register the employer with the Inland Revenue (HMRC)

You then need to make employees aware that their company offers Payroll Giving as a benefit

This we can help you with by raising awareness of your Payroll Giving Scheme whilst promoting one of our Charity Groups in an ethical and unobtrusive manner providing well informed and successful promotions. We can also help you to gain the Payroll Giving Quality Mark.

Post-Tax Giving

We can also help you to operate a post tax giving scheme where the employees can opt to donate to their favourite charity group by way of a standing order form. Although not attracting the full tax effective benefit, it will of course attract gift aid and has the benefit of being operated without the need to sign a contract with a Payroll Giving Agency.