Employers failing to offer payroll-giving schemes

Most UK companies still do not provide schemes in which their staff can contribute to good causes via their salaries, research shows.

A YouGov survey of more than 1,100 workers, commissioned by KPMG, reveals that 58 per cent of respondents said their employers do not offer a ‘payroll giving’ scheme through which they could make donations. 

Mike Kelly, KPMG director of corporate social responsibility, said: “Thousands of companies and their staff are missing out on these schemes.

“Payroll giving is the easiest, most tax-efficient way for employees to give to charity. The cost to individuals is less – and the charities receive more.”

Even before the Tsunami Earthquake disaster in the Indian Ocean, the Government said it wanted to encourage more payroll giving.

In the pre-Budget Report last December, an initiative worth £8.3m was announced in which small and medium-sized enterprises (with up to 500 employees) will receive a grant of up to £500 when they establish a scheme.

The schemes are tax efficient because charities receive the full donation made by employees, while employees receive tax relief on the donations made.

Brian Hill, chairman of The Children’s Trust, said the charity receives “invaluable support” through payroll giving.

“Financially, it is a vital and regular income that enables us to plan and know, with confidence, that we can continue to provide the particular care, therapy and support that our children need,” he said.

“Corporately, it enables the trust to build closer relationships with companies, as their employees are our advocates.”


Comments are closed.