Various measures have been announced to simplify and promote payroll giving. This has had a very low take-up in the UK despite being one of the main sources of charitable giving in the US. Only 1% of employers even offer the scheme, although 21% of employees said they would use it if available.
The new provision requires agencies which receive the donations to pay the money to the charity within 60 days of receipt of the money (or nomination of the charity if this is later). Previously there was no time limit for distributing the money, though Inland Revenue could enquire if there was no distribution within 90 days.
This provision complements the Budget provisions which remove the upper limit of £1,200 a year for payroll giving, so workers can give any amount, added a 10% supplement for three years, and launched a promotional campaign.
[2000]