How does Payroll Giving work?
Payroll Giving enables employees to give to MACS straight from their gross salary (before tax is deducted), and to receive immediate tax relief of up to £5 for every £10 donated. You (as long as you are on PAYE) decide on the amount that you would like to donate to MACS and inform your payroll department.
Your employer must have set up a relationship with a Payroll Giving Agency (PGA). PGAs are also registered charities, regulated by HMRC, who receive the donations and transfer donations from employers to charities.
If you pledge £10, it will only cost you £8 as a basic rate taxpayer (£6 for a higher rate taxpayer and £5 for a highest rate taxpayer) because the donation is being taken from your pre-tax salary. The tax relief is given to you - essentially, it costs you less, to give more!
The cost of setting up the scheme to your employer is minimal, as is the continued administration of the scheme. The PGAs take a small amount out of the donation to cover this cost. This is generally around 4-5% or 25p of the donation.
If you have set up a regular donation to MACS via Payroll Giving, please drop us a line to let us know at firstname.lastname@example.org
Thanks for your support of MACS!