This section includes the standards for promoting payroll and post-tax salary donation schemes in the workplace. It includes meeting HMRC requirements and making sure that employers and employees have clear expectations about how your scheme works.
There are various types of fundraising within the workplace, and there are direct laws and self-regulation that you should keep to. This code specifically covers
- Payroll giving – a tax-efficient scheme where the
donationis taken from employees’ pay before tax is taken.
- Post-tax salary
donations– where employees’ donationsare taken direct from their salary after tax has been taken.
Payroll-giving agencies receive employees’
The Charitable Deductions (Approved Schemes) Regulations 1986 place certain requirements on employers. We have not mentioned these in this code, but it may be useful to be aware of them.
HM Revenue & Customs’ (HMRC’s) website has a list of currently approved payroll-giving agencies.
As well as the standards in Part 2 Working with others, the following standards apply to
14.1.Professional fundraisers and payroll giving
14.2.Pre-tax payroll giving
As a payroll-giving agency, you must have a written agreement in place with employers using your scheme.
You must meet the requirements in The Charitable Deductions (Approved Schemes) Regulations 1986 and any amendments to these.
If you (or an employer) are going to highlight the different levels of tax relief, you must make sure fundraisers have up-to-date information from HMRC.
For more information on the legal requirements for
14.3.Promoting committed giving in the workplace
Before asking a group of employees for donations, you must agree conditions of access with the relevant employer.
You must make sure that donors are aware that they have the right to end an agreement to donate at any time.