Payroll Giving
Via Asser Bishvil Foundation

 

ABF is a charity authorised by HMRC to accept payroll donations. Payroll giving enables you to donate to charity straight off your payroll before calculating your taxable income, thus reducing your tax liability. This can be made in place of, or in addition to any regular amounts or one-off donations that you give to ABF. Payroll donations also helps you to carry out your charitable wishes without much effort on your part. It all happens automatically, with full tax records, giving you peace of mind. It is easy to increase or reduce the amount depending on your circumstances.

EXAMPLE
If you give £10.00 per month, as a 20% taxpayer that donation will cost you £8.00 and as a 40% taxpayer that would cost you £6.00. In each case the charity receives £10.00 but it will cost you less than £10.00 to make the donation.

 

POTENTIAL ADDITIONAL BENEFIT
When making charitable donations under the payroll giving scheme, then the amounts withheld from your wage can be deducted from your employed earnings for universal credits and tax credits calculations. The amount of earnings reported by your employer to the Department for Work and Pensions should be after the donations have been taken off.