We have been looking at ways of promoting charitable giving through the payroll and to provide the most effective way of making tax savings on donations. Set out below are two methods that will enable you to make charitable donations.
Payroll Giving is a way for employees to make regular payments to any charity directly from their pay. The University has registered with Charitable Giving which is a tax office approved payroll giving agency. As a member of staff at Aston you will be able to complete a form detailing your chosen charity and the amount you wish to give. The University will then deduct the chosen amount from your pay before tax is calculated. This means that you are given tax relief on your donation immediately. For example, the cost to you of a £100 donation to your chosen charity will be £80 if you are a basic rate taxpayer, £60 for a higher rate tax payer, and £50 for an additional rate tax payer.
The University will, on a monthly basis, transfer the amounts deducted to Charitable Giving which then distributes the donations to your chosen charity. Charitable Giving will retain a small administration charge for this service, which is approximately 25 pence per donation.
If you wish to make donations or require any further information please go to:
https://www.charitablegiving.co.uk/account/donation-choice-start.aspx?empId=Aston+University where you will find full details and an application form to complete if you wish to participate.
Salary conversion is a way of converting some of your gross pay in exchange for a benefit you select (thereby saving tax and National Insurance contributions).
It is not possible to offer a general charitable giving scheme under this arrangement. However, it will be possible for the University to nominate a single cause, in this case Aston University itself, and invite employees to convert salary in exchange for a charitable donation to it. The donation made to the University would then become an employer donation. In this way, if you would like to donate to the University you can do so in a very cost effective manner, as you will not only receive tax relief at source, but also make national insurance savings. Donations will go to the University’s Annual Fund which is used to support students.
Further information and an Aston University – Charitable Donations Salary Conversion Opt In Form can be found here.