Questions about Payroll Giving

There are few ways of supporting the Red Cross more effectively than by giving a regular gift straight from your salary. Here is everything you need to know about giving through this scheme.

1. What is Payroll Giving?

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Payroll Giving is a HM Customs & Revenue scheme that enables employees to donate tax free through their pay to any charity in the UK. Payroll Giving is a simple, efficient and flexible scheme, which allows you to donate to any UK registered charity of your choice by a direct deduction from your wage. All donations given in this way are tax effective so the charity receives your donation and the tax you would have paid on this amount.

2. How does it work?

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First of all you need to fill out our online donation form. We will then pass your details on to our Payroll Giving Agency, who will then communicate with your employer to set up your gift. You will not have to make any arrangements yourself, however it normally takes a couple of months to process a payroll gift so don’t be alarmed if the deduction doesn’t appear on your next payslip!

3. How does my tax rate affect my payroll gift?

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As your payroll gift is taken out of your gross salary your tax rate does not directly affect how much money the charity will receive. However, were you not to make the donation, you would have lost either 20% or 40% (depending on your tax rate), to the taxman. That is why a £10 payroll gift only costs £8 for people who pay 20% tax, and only £6 for people that pay 40% tax!

4. How have you worked out my tax rate?

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Our one-screen calculator works out how much of your donation will be paid by you and how much will be made up by the taxman. In order to do this we have assumed that all salaries between £5,500 and £36,000 are taxed at the 20% base rate, and that all salaries above this at the higher 40% rate. Please be aware that if your salary is very close to one of the tax boundaries mentioned, the actual tax-efficiency of your payroll gift may differ very slightly from the figure given by our on-screen calculator.

5. What if my employer doesn’t offer Payroll Giving?

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Not all employers currently offer a Payroll Giving scheme. If your employer is one of these, please encourage them to do so – setting up the scheme is simple and cost free and can be done by following the steps on www.cafonline.org/giveasyouearn.

6. How will I know if I’m eligible to join a scheme?

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Everyone who earns a salary or pension and whose employer deducts Pay As You Earn tax from their salary or pension is eligible to join the scheme.

7. What if my circumstances change?

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You can change the amount you give or stop donating at any time. However if you move job and want to carry on donating to The British Red Cross straight from your salary you will have to set up a new regular gift.

8. What happens when I sign up and submit my information?

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You’ll receive an email to confirm that we’ve received your details. Your information will then be passed onto our Payroll Giving Agency and to your employer so that your regular donation can be set up.

9. What will you do with my personal details?

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The British Red Cross will need to share your personal details with the Payroll Giving Agency we are working with and your employer in order to set up your gift. We will not pass your details onto anyone else. We like to keep supporters in touch with our work. If you do not want to receive any communications from us, please email us at supportcare@redcross.org.uk or call 0844 87 100 87.

10. What is the privacy policy?

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The British Red Cross is committed to the protection of your privacy. All personal information given to us through this website will only be held and used with care and in accordance with our privacy policy and the Data Protection Act 1998. Your use of this website constitutes your agreement to the terms of this Privacy Policy. Please click here to read our privacy policy in full.

11. What are the terms and conditions?

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Click here to view our full terms and conditions.

12. What will the Red Cross do with my donation?

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The British Red Cross will use your gift to support the work we are doing in this country and all over the world. We will not use you donation for a specific area of our work, but will allocate it to where there is the greatest need.

13. Why is regular giving important?

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Regular gifts enable the Red Cross to save lives by responding to emergencies wherever they occur, across the world and here in the UK. They provide us with a reliable source of income that allows us to plan ahead with confidence. They also allow us to keep our administration costs to a minimum.

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No matter what size your donation, a gift from you could give hope to thousands of people when disaster strikes.