How to introduce and manage a payroll-giving scheme

Author: Paul Tew

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

• Ensure that a business case is made to support the introduction of a payroll-giving scheme.
• Outline exactly what your organisation needs from the payroll-giving agency (PGA) and find out what level of service and support each agency provides before selecting a PGA.
• Check that the payroll-giving forms are fit for their intended purpose and that the employee will understand what they need to do.
• Check that the payroll system has been set up to give the employee tax relief on their donation at their marginal rate of tax.
• Understand how employee donations are forwarded to the PGA and be clear whether or not there are any scheme administration costs.
• Be aware of the record-keeping requirements of HM Revenue and Customs (HMRC).
• Take into account how the scheme complements any existing charity giving and ensure that the benefits of payroll giving are explained to employees when you are planning the promotion of a payroll-giving scheme.
• Undertake a scheme review once the payroll-giving scheme is in operation to ensure that the scheme continues to meet the business' stated aims and objectives.