Government consults on reforms to improve Payroll Giving

The Government has launched a consultation on proposals to reform Payroll Giving.

The Government has launched a consultation on proposals to reform Payroll Giving. In 2011-12, £118 million was given to good causes by 735,000 people through Payroll Giving, but the Government believes that there is scope to increase this by simplifying the scheme’s administration and making it easier for donors to give. Payroll Giving allows UK income taxpayers to give regularly and on a tax-free basis to the charities and good causes of their choice. Donations are deducted from gross pay, so each £1.00 given will only cost a basic rate taxpayer 80p. At present, only 2% of employers offer Payroll Giving schemes, with just 3% of employees donating. The Government’s proposals are designed to make it easier for donors to start Payroll Giving, will mean charities receive donations more quickly and will make it easier for people to keep donating when they move job. Consultation ends on 19 April 2013.

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