If you are a UK income taxpayer, there is an easy and simple way to make regular gifts to your chosen charity.
The Payroll Giving scheme enables you to donate frequently from your gross pay/ pension to any UK registered charity. It’s a tax-effective way of giving through your salary.
With Payroll Giving you can donate to MAMA Youth Project straight from your gross salary (before tax is deducted) giving immediate tax relief on your donations.
- Timi McEwen, MYP Alumni & Digital Intern, Lime Pictures.
How much can I donate?
If you choose to donate through Payroll Giving, you have full control over how much you would like to give (there is no minimum, or maximum amount) and it will cost you less to give more!
If you pay the basic 20% tax rate, for every £1 that you earn, 20p is paid in tax. For example, if you pledge £10 a month, we’ll receive the full amount but only £8 will be deducted from your net pay.
Example of pledges and costs:
Employee pledge | Cost to standard rate | Cost to higher rate | Cost to highest rate |
£5 per month | £4 | £3 | £2.75 |
£10 per month | £8 | £6 | £5.50 |
£15 per month | £12 | £9 | £8.25 |
£20 per month | £16 | £12 | £11 |
Plus, it is more efficient for higher rate taxpayers to donate through Payroll Giving than Gift Aid as charities cannot claim back tax above the basic rate through the Gift Aid scheme.
The income tax applicable to the donation is paid to MAMA Youth Project instead of HMRC.
How do I donate to MAMA Youth Project through Payroll Giving?
Check with your employer to make sure that your company offers Payroll Giving. If they do, they can arrange your donation through your salary for you.
If your employer does not currently offer Payroll Giving, you can write to them and encourage them to set one up. To set up a Payroll Giving scheme, your organisation will need to register with an approvedPayroll Giving agency.
You can change or cancel your donation at any time, simply tell your employer. If you change your job, your donations will not be transferred to your new employer, so you will need to start a new Payroll Giving scheme with them.
If you have any queries about making regular donations through your salary, please contact our team on 0300 102 3965 or email us at: info@mamayouthproject.org.uk
