How does payroll giving work?

Read through the Guide to Payroll Giving to understand how the scheme can be implemented and the role of employers, employees, payroll administrators and donee organisations.

Why support payroll giving?

Payroll giving is a voluntary scheme for both employers and employees. It's likely that you will receive questions from employers about the scheme and how your payroll product enables employees to donate via payroll. By enabling the deduction of payroll giving donations and calculation of employee tax credits you are ensuring that those employers that wish to offer the scheme to their employees are able to do so. Payroll giving functionality adds another feature to your payroll offering and is one way that you can support and facilitate charitable giving.

Inland Revenue have provided the necessary technical specification for payroll providers to implement payroll giving functionality into their products and services. You can download this specification here: Inland Revenue Technical Specification for Payroll Giving

By providing payroll giving functionality, you also have the opportunity to promote payroll giving to your clients and raise awareness of both your products and the payroll giving scheme in general.

A number of payroll providers have already established processes to help their clients manage payroll giving donations. You can find out more by contacting one of the following organisations: