How to setup a payroll giving scheme

How to setup a payroll giving scheme

Setting up a Payroll Giving Scheme is quick and simple, the only thing you need to do is fill in a few forms. See the steps below for detailed information on the whole process, from registering to implementing, if you are unsure of anything, please Contact Us.


First of all your company needs to register with a Payroll Giving Agency that has been approved by HMRC, these organisations administer the scheme on your company’s behalf. The total monthly deductions made by payroll are sent to them and they distribute them to the chosen charities.

The three Payroll Giving Agencies that we do the most work with are;

Charities Aid Foundation (CAF)

Charities Trust

Charitable Giving

Contact Us and we can advise you which agency might suit your business best and help you to fill in the simple registration forms.


Once you are registered with a Payroll Giving Agency we can help you launch your Payroll Giving Scheme. We do this in various ways, depending on your workplace environment and what is suitable for your company; see our case studies for comments from some of the companies we work with.

Our completely free services, including personalised branding and online portals will help to raise awareness and participation. We tailor make campaigns for your specific needs. See our sister site for launch ideas. Contact Us to chat about what sort of approach would best suit your needs best.


1. Hands On Helping promote the scheme

Once your company is registered with an agency, we market the scheme to colleagues. We provide bespoke online facilities and sign up forms, along with intranet articles and supporting materials. Our experienced advisors then visit your workplaces to inform colleagues about the scheme. This can take the form of a table promotion in a prominent place or a discreet walkabout of in the workplace. When employees have signed up to Payroll Giving we send the information to your company payroll department in an agreed format, via our secure FTP site. The employees’ information is also sent to your Payroll Giving Agency and the donors chosen charity.

2. Company Payroll Department make deduction

When your company receive the details of the employees that would like to join they set up the regular deduction. This is much like a pensions contribution, taken before tax, but after NI is calculated. On a monthly basis your payroll department collate all deductions and send them, along with a list of the employees who have donated to your Payroll Giving Agency. Any time that is takes for your company to administer the scheme can be offset against your company corporate tax.

3. Payroll Giving Agency distribute funds and Charities thank

On a monthly basis, the Payroll Giving Agency sends all donations off to the relevant charities. There is a small fee (25p to 4% per donor) applied to donations, many companies cover this cost on behalf of their employees to ensure each charity receives the full donation. Each charity writes directly to the donor (if wished) to say thank you and to keep them up to date with their work. Please note we can only guarantee thank you letters from organisations featured on our website.