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Latest NewsPay & benefits

Government initiative encourages payroll-giving schemes

by Mike Berry 29 Nov 2004
by Mike Berry 29 Nov 2004

A new multi-million pound government initiative aims to encourage smaller firms to set up payroll-giving schemes, and to encourage employees to channel monthly donations directly from their salaries to their favourite good cause.

Payroll giving makes it easy for individuals to donate a regular amount tax effectively to a charity of their choice.

The £8.3m investment in the new programme was announced by the Chancellor Gordon Brown in the budget. Small and medium-sized enterprises will receive a one-off grant of up to £500 depending on their size, as an incentive to set up a payroll-giving scheme.

In addition, the Government will match pound for pound, up to a maximum of £10 per month, an employee’s donation for six months from when the employee signs up.

There will be an operational launch of the scheme early in 2005, which will be administered by the Institute of Fundraising.

 

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