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Employing staff

How to set up payroll giving donations for your employees.

Before you start

Check the donee organisation is on the approved list.

If they are not on the approved list, your employee will not receive a tax credit.

Approved donee organisations

Set up your employees' donation in your payroll system

Deduct the donation amount your employee has requested from their salary or wage.

Work out the tax credit for each donation an employee makes. The amount is 33.33% of the donated amount. Reduce your employee’s PAYE by this amount.

Record the tax credit for each employee when you submit your employer monthly schedule.

Pass donations to the donee organisation

  • Pass the donations within the specified timeframe.
  • Tell them it is from payroll giving.

My responsibilities

  • Keep records of all donation amounts, tax credits, donee organisations and payment dates.
  • Keep all receipts you get from donee organisations. Do not include them as donation receipts for your business, for individual tax purposes or give them to your employees.

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Last updated: 28 Apr 2021
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