STTRES
23s/NP120
PERSONNEL SUB-COMMITTEE
 
13TH APRIL 1987
 
SCHEME FOR CHARITABLE DEDUCTIONS FROM PAY WITH TAX RELIEF
 
REPORT OF THE COUNTY TREASURER
 
 
At their meeting on the 13th October 1986 members considered a first
report on Payroll Giving Schemes, and resolved to note the report and
to ask for a further report when the necessary regulations were
issued.
 
Inland Revenue Regulations have now been issued which are operable
from the 1st April 1987.
 
The main features of Payroll Giving Schemes are:
 
    -    the Inland Revenue will approve agency charities to run the
         scheme and will set up a register of approved agents.
 
    -    approved agencies will make the necessary contractual
         arrangements with employers who indicate their intention to
         operate the scheme.
 
    -    employees wishing to take part in a scheme will authorise
         their employer to deduct their charitable donation from
         their pay.
 
    -    the employer will make the deduction before calculating PAYE
         tax, thus giving tax relief on donations of up to £120 a
         year.
 
    -    the employer will pay the donations to the agency charity
         who will operate as a clearing house for the distribution of
         donations to the individual charities nominated by the
         employees.
 
At the time of writing this report three relevant charity agencies
have obtained approval from the Inland Revenue, to participate in the
scheme.  It is anticipated that others will obtain approval in the
future.
 
Hampshire may, therefore, enter into a payroll giving contractual
agreement with an appropriate agency which it is considered will
offer the best service at least cost and offer the facility to staff.
 
Members are reminded that the scheme is entirely voluntary, no
employer or individual employee will be obliged to run or take part
in a scheme.
 
There will be a small initial cost to Hampshire County Council in
setting up a scheme through adding it to the current payroll system
and publicising the scheme to all members of staff.  Running costs
are difficult to measure but would be no more than the cost of other
deductions already offered through the payroll.
Recommendation
 
The Sub-Committee are asked to:
 
(i)   approve a payroll giving scheme being made available to all
      staff of the County Council,
 
(ii)  empower the officers to enter into the necessary contractual
      agreement(s) with appropriate agencies and implement the scheme
      as soon as practicable.
23s/NP120

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