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Toybox explains: What is payroll giving?

Updates • Mar 2023

Payroll Giving is a scheme that allows employees to give money to charity through their pay. This can be as little or as much as you like, and it's deducted from your gross salary before tax which means you will receive a tax benefit for the donation.

Payroll giving is simple and convenient as you don’t need to provide any bank details, so it's no wonder that many people choose this way to give!

A tax efficient way to give

The donation is deducted from your gross salary after National Insurance but before tax, and so you get to add that extra cash to your pay packet as well as receiving a tax benefit. For example, a donation of £10 would actually cost you £8 from your take home pay, if you pay 20% tax or £6 if you pay higher rate tax at 40%.

The benefits to Toybox of Payroll giving

Donations through a payroll giving scheme means a regular, reliable income stream, which allows us to plan ahead and budget for future projects to support children in street situations. The administration of the donations is low and we receive the donation including tax without having to reclaim the Gift Aid through HMRC at a later date. Often employers choose to match their employees’ gifts, some even double-match their contributions meaning additional income at no extra cost to us.

Setting up payroll giving

Your employer will most likely have an account with a payroll giving provider, which can be either an independent organisation or one of the big high street banks. Your payroll department will have all the details and advise you on how to join the scheme. You will be able to choose from a list of charities, including Toybox. It's also easy for you to change the amount you wish to donate at any time during the year.

If your employer is not set up with a provider, then they can find out how to set it up by visiting

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