Find out the process to follow when you offer payroll giving to your employees.
Before you start
Check the donee organisation is on our list of approved donee organisations. If they are not on the approved list, your employee will not receive a tax credit.
Make sure your employee gives you enough information to pass on the donation. This includes the:
- donee organisation’s name
- amount of the donation
- pay period, or periods, they want to donate in
- bank account or postal address details for the donee organisation.
Deduct the donation amount from the requested pay period
Reduce the employee's PAYE
Work out the tax credit for each donation. This amount is 33.33% of the donated amount. Reduce your employee’s PAYE by this amount.
Record the details
Show the amount of tax credits for payroll donations on your IR348.
In your wage records, record the:
- donee organisation
- donation amount
- tax credits for payroll donations amount
- date of donation.
Update the employee's pay slip
Show the donation amount and the tax credits for payroll donations.
Pass the donation on to the donee organisation
Tell them the donations are from payroll giving. If they give you a receipt, keep it with your employer records.
Make sure you pass on the donation in the correct timeframe, or the donation amount becomes PAYE debt for your business.
Payroll giving responsibilities
Your responsibilities
You can find your responsibilities as an employer on our website.