Payroll giving

Setting up a scheme is very straight forward. The first step is for employers to register with a recognised Payroll Giving Agency (PGA) – a popular one is the Charities Aid Foundation.

Key Steps

  1. Employer signs a contract with a Payroll Giving Agency (PGA).
  2. The PGA notifies HMRC that the contract has been signed which means that the employer can begin to deduct donations from pre taxed income.
  3. The employer promotes the scheme in the workplace (with publicity materials provided by Vetlife).
  4. Employees complete their Payroll Giving donation forms (manually or electronically), identifying Vetlife (Reg No. 224776) as they charity they want to support and how much they want to give.  Upon completion, the forms are given to the HR department. (sample forms available)
  5. The employer’s HR Dept sends copies of the completed forms to the PGA.  Then every pay-run going forward, the deducted amounts and a statement showing the names of the people giving and the chosen charity is sent to the PGA.  Many PGAs request that the employer forwards these payments on to them within 14 days of the pay-run.
  6. When the PGA receives the money and the list of donors they check that they have the right information and then forward the money to Vetlife within 35 days each month.
  7. Payroll donations are paid directly into Vetlife’s bank account by BACS from the PGA (not direct from the employer).
  8. The PGA produces a report that lists all the transactions, employer and employee details for the previous month know as ‘disbursement statements’.  There is often a small admin fee for the charity to receive these statements and they can be received electronically or downloaded from the PGA’s website.

More information for employers about setting up a scheme is available on Gov.UK.