Charities celebrate 25 years of tax-free giving

Thetax-freesystemenabling workers to give money directly to charities from their pay is 25 years old this week – and has led to £1.2 billion being donated.

More than 8200 companies and 720,000 employees are involved in the Payroll Giving scheme, introduced on April 6 1987, which benefits 13,000 charities a year.

Payroll or workplace giving allows anyone who pays UK income tax to give regularly to the charities and good causes of their choice with donations deducted before tax.

The scheme had 1800 companies in its first year. The Association of Payroll Giving Organisations (APGO) said it wants to double the number of employers offering the scheme by 2017.

APGO marked the quarter-century milestone by delivering a giant card to 10 Downing Street.

Prime Minister David Cameron said: “The amount of money that people give to charities in this country is a testament to the generosity of the British people.”

APGO spokeswoman Liz Davies said: “The amount raised for charities is a marvellous achievement, both by companies who offer Payroll Giving and their wonderfully generous employees, who recognise the value of sustained giving.

“The 25th anniversary of the scheme is a great opportunity for us all to say thank you to them.”