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News update – Payroll giving

By The Team | November 24, 2009

You may have heard that the new Payroll Giving legislation comes into effect on 7 January 2010 and wondered what it’s all about.

From 7 January 2010 if an employer decides to offer payroll giving (and it’s up to the employer) it gives employees the opportunity to donate to approved donee organisations directly from their pay and receive immediate tax credits that reduce their PAYE.  Previously employees had to wait until the end of the year to claim those tax credits.

You may have wondered if SmartPayroll will be able to cope with the new changes.  The answer is Yes!

Our team of technicians have been working hard to make sure that SmartPayroll will be able to handle payroll giving very easily when it goes live on the 7th January 2010.  SmartPayroll will handle all the employers’ obligations as follows:


  • Deduct the requested donation amount from the individual employee’s salary or wage
  • Calculate the correct tax credits for payroll donations for each donation made
  • Record the tax credits for payroll donations for individual employees
  • Keep records of all tax credits for payroll donations, donation amounts, donee organisations and payment dates
  • Pass the donations to the chosen donee organisations within the specified timeframe of the deduction being made from the employee’s salary or wage
  • Advise the donee organisation the donation is a result of payroll giving.