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Tax change means "payroll" charity donations worth 25% more

Tax change means

Wednesday 28 October 2015

Tax change means "payroll" charity donations worth 25% more

Wednesday 28 October 2015

Charities will get a boost out of a change in tax policy that will add 25% to the value of donations by Islanders who give away some of their monthly earnings.

The Income Tax Office has agreed to change its policies so that monthly "payroll" donations - through which workers give a percentage of their earnings to a charity - will now be calculated as a lump sum at the end of the year, which means that more will be over the £50 threshold beyond which charities can claim 25% tax back.

In the words of the Jersey Fundraising Forum, a new campaign group, that means that staff only have to donate £4.20 per month to create an annual benefit to the charity of £62.50.

The forum was set up to help charities maximise their income - since it was established in August it already has 24 members.

The Forum's Chair Melissa Nobrega said: “This change in policy opens up more opportunity for people to easily donate to charity, on a regular basis and in small amounts.

"For charities wishing to make a tax rebate claim, employees would only have to contribute £4.20 a month to accumulate £50 over the course of the year, which will provide the charity with a further £12.50. It’s also really inclusive for employees as they can choose which charities they would like to support."

Through the payroll giving scheme staff at BNP Paribas have been donating the equivalent of an hour’s pay each month to Friends of Jersey Oncology and Jersey Hospice Care.

The Bank’s Senior Human Resources Officer Rebecca Daly said: “We are delighted that many of our staff have signed up to the BNPP ‘Your Hour to Give’ payroll scheme.

“The change in policy has made administering this initiative so much easier and enabling charities to claim back tax on smaller donations, is surely the right thing to do and a fantastic result.”

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Posted by June OKeeffe on
Can I change my name to charity to be able to survive once I have paid all these taxes
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