More than a quarter of UK-based employees (27%) at City firm Taylor Wessing have signed up to a scheme that gives money to charity through their pay.

Payroll giving was introduced by the government in 2000 and in 2003/4 raised £91 million for good causes. Typically around 5% of a company’s employees sign up.


Under the scheme, employees can give tax-effectively to charity – a gross donation of £10 by a standard rate taxpayer would mean a charity receiving £12.86. For a higher-rate taxpayer, the organisation would receive £16.66.


In contrast to donations made through Gift Aid where tax relief is only at the standard rate, under payroll giving, relief can be at the top rate.


Additionally, following an initiative announced by Chancellor of the Exchequer Gordon Brown in the 2004 budget, small and medium-sized enterprises with fewer than 500 employees can receive a one-off grant of up to £500 if they sign up to the scheme before the end of 2006.


The government has also said it will match the first £10 per month donated by each employee who signs up, for the first six months that that member of staff makes gifts. This means that in the early stages of a firm’s scheme, a charity could receive £26.66 for a £10 donation.


More than £45,000 a year is given to UK-registered charities by Taylor Wessing employees, which works with Workplace Giving UK to promote its scheme. Other law firms involved with the professional fundraising organisation include City firms CMS Cameron McKenna and Watson Farley & Williams, and London and regional firm Mills & Reeve.


According to Paul O’Hara, Workplace Giving UK’s managing director, payroll giving is relatively simple to set up and administer.


He said: ‘It is a massive opportunity but not too many firms have taken up the scheme.’


Jonathan Croucher, head of human resources at Taylor Wessing, said: ‘With this being the most tax-effective way to give to charity, particularly for higher-rate taxpayers, I’m not surprised by the success we have achieved. Payroll giving is an easy way for our staff to make a real difference.’


For details, e-mail: information@workplacegiving-uk.co.uk.