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Payroll Giving

Employers all over Britain are discovering the value and benefits of working together with their staff to help the community. Payroll giving has proved an ideal means to develop supportive relationships with the community and generate a positive public image. It can also help CMT United Kingdom to achieve a regular source of income with which to budget and plan ahead.

Did you know that if you donate £10 a month to CMT United Kingdom from your pay, your gift will only cost you £7.80! The taxman gives us the extra £2.20! It will cost you even less if you are on higher rate tax.

For instance ...

...if you pledge to donate £5 each month
...and you pay tax at the 22% rate, you will pay £3.90

...or if you pay tax at the 40% rate, you will pay £3
...the government then adds a further 10% - 50p

...meaning your total donation each month is £5.50
...and your donation to CMT United Kingdom over a whole year will be £66

If you pledge to donate £20, you will pay £15.60 (22% tax rate) or £12 (40% tax rate) and your donation will be worth £264 over the year.

If you are an Employee

Give As You Earn (GAYE) is the tax-effective payroll giving scheme operated by Charities Aid Foundation (CAF), itself a registered charity, for the use of all resident UK tax payers.

Almost everyone gives to charity, but very few people give with the benefit of tax relief. In a recent survey by CAF, 81% of those asked said they had given to charity in the previous month. Yet only 10% had done so tax effectively. Give As You Earn offers employees the chance to increase the value of their donation - at no extra cost - by allowing you to make a donation directly from your pay packet before tax. Give As You Earn donations, therefore cost less than a contribution dropped in a charity collection tin.

The beauty of the GAYE scheme is that it works for every size of pocket. The maximum amount to be donated via payroll giving is £1200 a year.

To join the Scheme

All you need to do is fill in the Give as You Earn Pledge form and send it to the Fundraising Department at CMT United Kingdom.

We will then photocopy the form and send the original to CAF. If your employer is operating a payroll deduction scheme, the coupon will be sent to your employer for processing.

If your employer is not operating a payroll deduction scheme, CAF will advise you within six weeks if or when the employer will begin deductions.

If you are an Employer

The proposition is a simple one. Your employees can give tax-free to charity because the amount they want to donate is taken from their pay before tax.

Give As You Earn (GAYE) is a payroll giving scheme operated by the Charities Aid Foundation (CAF), itself a registered charity. Over 3,000 employers in the UK currently use Give As You Earn which means the scheme is available to around 5 million employees.

CAF deducts a small administration fee of 5% from each donation to cover its costs. Many leading employers have found that paying the administration fee on behalf of their employees encourages them to join GAYE. The Inland Revenue recognises this as a legitimate business expense.

To register with the scheme

If you are not yet registered with the GAYE scheme and would like to be, or if you have questions to ask, then please contact CAF and they will send you a full Employer Pack, complete with Contracts and Payroll Registration Forms. After Inland Revenue approval, you can then promote the scheme and start making deductions.

CAF is able to offer help and advice on all issues relating to GAYE, including helping your payroll department to install and operate the scheme. Contact The Charities Aid Foundation, Kings Hill, West Malling, Kent ME19 4TA; Tel: 01732 520 000; Fax: 01732 520001; web site: www.giveasyouearn.org

E-mail: giveasyouearn@caf.charitynet.org.