Are New Payroll Solutions Needed for Charitable Donations?

In February 2012 the government made an announcement that brought cheer to fundraisers and payroll service providers alike, with the news that the legislation covering tax relief on charity donations was to be simplified.Whether the changes will have made any difference to the deductions listed on the payroll system is debatable, however. A recent survey by the National Council for Voluntary Organisations (NCVO) and Charities Aid Foundation (CAF) reveals that Payroll Giving accounted for just three per cent of all donations made in the UK last year – the lowest share of any fundraising initiative. The figures were derived from direct debits, cash donations and payroll information.

The government rarely comes up with helpful payroll solutions, but the February announcement, which proposed that the existing standard and higher rates of tax relief were to be replaced by a 30 per cent composite relief, would certainly make the payroll system easier to manage. The plan also simplified the way in which charities were paid the tax relief, with both self-assessed and PAYE employees treated the same. However, with people increasingly tightening their belts to make ends meet, they are less likely to want to make a further deduction from their salary.

Payroll Giving in Action is an experienced agency based in the Irish Republic, familiar with the HR and payroll solutions available to companies in Ireland. Their research suggests that an Employer Payroll Giving scheme can benefit a business as well as the charities it supports. Employees are more willing to work for a company that cares, with a definite link between social responsibility and employee productivity.

List A = payroll solutions/ HR and payroll solutions /
List B = payroll system/ payroll service providers

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