Government urges employers to introduce payroll giving

UK employers could give millions of extra pounds to charity
if they sign up to the Government’s payroll giving scheme.

Next month, all UK companies with more than 50 employees
will be sent new Government literature urging them to sign up to or re-launch a
payroll giving scheme.

Payroll giving enables workers to make charity donations
from their gross pay, before tax.  The government
is adding 10 per cent to all donations until April 2003.  This means that a £10 payroll pledge could
cost the standard-rate taxpayer just £7.80, but is worth £11 to charity.

Employers are crucial in the scheme’s success, says the
Inland Revenue.  Unless they sign up,
their employees are unable to donate direct from gross pay and charities may
miss out on millions of pounds.

Although payroll giving is increasing in the UK, just 1 per
cent of employers have signed up, says the Inland Revenue.

One of the employers experiencing the benefits of running a
payroll giving scheme is Andersen, which has more than 400 employees donating
over £150,000 to charity each year.

“It boosts staff morale, improves employee relations and
ensures charities receive more,” says Judith Hardy, Andersen’s HR director.

By Karen Higginbottom

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