Employers are being encouraged to mark International Day for Charity by allowing staff to make tax free donations to their chosen causes.
Martina McAuley, of human resources and employment law specialists HR Team, says the Payroll Giving scheme is often overlooked by employers, despite research that suggests it has multiple benefits for both businesses and employees.
“It allows companies to demonstrate a socially conscious side to business and boost their corporate responsibilities, which in turn can aid staff relations, boost employee morale and improve staff retention,” she said.
Her comments mark tomorrow’s International Day for Charity and National Payroll Week which began yesterday.
Ms McAuley continued: “The UK Payroll Giving scheme is a simple, tax free means for employees to make monthly donations to any national or local charity directly from their gross pay.
“It is quick and easy to set up and administer at minimum cost to the company and allows employees to give regularly to charity in a way that is still cost-effective for the business.
“Staff donations are taken from their pay before tax is deducted and they receive tax relief on their donation immediately and at their highest rate of tax.
“It effectively means employees can give more for less, while businesses can demonstrate a commitment to supporting causes which are important to staff.”
Ms McAuley said such a commitment was becoming increasingly important to employees.
“Employees now view companies who demonstrate a social responsibility, such as a Payroll Giving scheme, as desirable workplaces.
“Research in this area consistently finds that employees who contribute to payroll schemes are more loyal and happier in the workplace,” she said.
Ms McAuley’s comments coincide with International Day of Charity 2017 on September 5.
Employers can get more information online at www.gov.uk/payroll-giving
Note to editors
The International Day of Charity is observed annually on 5 September. It was declared by the United Nations General Assembly in 2012. The prime purpose of the International Day of Charity is to raise awareness and provide a common platform for charity related activities all over the world for individuals, charitable, philanthropic and volunteer organizations for their own purposes on the local, national, regional and international level.
Taking place on the 5-9 September, National Payroll Week recognises the impact of payroll on business and its contribution to the UK economy.
HR Team is the UK and Ireland’s fastest growing human resources consultancy and is based in Derry-Londonderry, NI.