Employee information for lump sum donations through payroll
You can make donations to a nominated charity directly from your salary.
If the accumulated amount over the year is £50 or more, the donation will qualify as a lump sum donation.
It is an easier way to give, as your employer will administer the scheme and you can spread your charitable giving over a year.
For example:
- you join an employer who have a lump sum donation payroll scheme, so you set up a £10 per month donation direct from your salary from January to December
- the employer sends your donation to the nominated charity in December
- as the donation is over £50 it qualifies as a lump sum donation
- the charity will receive your £120 plus an additional £30 from the Taxes Office
Your payroll will still provide your gross income (the amount before the charity deduction) to the Taxes Office and this is also the amount you must declare on your annual tax return.
You should also enter the details of the donation, along with any other qualifying donations to Jersey charities, on your personal tax return.
Download lump sum donation payroll scheme form (size 31kb)
Employers information for lump sum donations through payroll
When you set up a lump sum donation payroll scheme you must ensure that the nominated charity is established in Jersey and exempt from income tax. The charity will be able to provide a letter from the Jersey Taxes Office confirming they 'are exempt under Article 115(a)' as proof of this.
When the total collected is given to the charity you must include a schedule with the following information for each employee who has donated:
- tax reference
- name
- address
- amount donated for the year
You are responsible for the administration of the scheme, including keeping records of the donations for 6 years.
If you don't pay income tax
If you are below the tax threshold, exempt from income tax or a zero rated company you should not use these schemes, but just pay the charity the amount you want it to receive.
If you do make a payment using the above schemes you will have to pay income tax of the amount that the charity receives from the taxes office.
A 10% company would need to pay half of the amount the charity claims back.
Please follow this link to find full details:
Reclaiming Tax
Reclaiming GST
All charities registered as 'tax exempt' for charitable purposes may reclaim GST directly from the taxes office.
If your charity hasn't already been issued a GST Reference number you should apply to the tax department in writing enclosing a copy of your tax exemption letter. You will need this number to complete your claim and this should be inserted on the claim form.
Follow this link and read the instructions carefully to make a claim: https://www.gov.je/taxesmoney/gst/businesses/industry/pages/charitiesnonprofit.aspx#anchor-0
Reclaiming tax from lump sum donations - 'Jersey Gift Support'
If a donation is made to you for £50 or more, and the donor is a Jersey taxpayer, you can claim an extra 25% on the donation by asking the donor to complete a form R10.
The process has recently changed, to make it easier for donors and charities.
Please follow this link to find out how you make a return to the taxes office: https://www.gov.je/TaxesMoney/IncomeTax/Charities/Pages/SubmittingAClaim.aspx#anchor-0
Reclaiming tax on payroll giving
Employers can easily set up 'payroll giving' for their employees and if the annual amount equates to £50 or more, the charity can then claim an extra 25% as a 'lump sum donation'. Please follow this link to find out more: https://www.gov.je/taxesmoney/incometax/charities/pages/makingdonation.aspx
