Tax effective ways of giving

Payroll giving

The simple way for working people to give to charity. But how does it work?

You make a donation straight from your gross pay before tax via your employer’s payroll giving scheme.

If you are an employee and wish to give to Project Peru in this way please discuss this with your employer. If your employer has a scheme, choose how much you want to pay, tell the payroll department and they will do the rest.

If they do not run a scheme already, encourage them to do it. It is easier than they may think and plenty of advice is available. If your employer does not operate this scheme (or if you are an employer who does not yet operate a payroll giving scheme on behalf of your workforce) please see a list of Payroll Giving Agencies.

http://www.hmrc.gov.uk/businesses/giving/payroll_agencies.htm

Legacies

What can you leave to those who have had much less than you? Please don’t forget to remember Project Peru in your will. We are a very small charity with very low running costs. But we are only able to carry out the work thanks to the generosity of our supporters. So this is how YOU can help us to go on helping Peru.

Why should I make a will

It makes things easier for those minding your affairs after your death. You can provide for family and friends. You can ensure that your estate goes to the people you want. Causes dear to your heart can be helped for many years. A will can keep alive the memory of your work and interests.

A legacy to Project Peru will provide vital funding to help our work.

And you can save on tax

Wills can reduce tax payments. Legacies to charities are not subject to Inheritance Tax. So, if you leave a legacy to charity which brings the total value of your estate below that tax threshold, it should  reduce the amount of money that your estate will have to pay in taxes.

What do I do next?

There are several forms of legacy. You should draw up your will with expert advice, such as that of a solicitor or your bank manager.

If you are making a will . . .

… or decide to change your will, please do not forget to remember Project Peru. Or you may be asked to be the executor of someone’s will which may leave a donation to unspecified charities.

There is little resistance to the idea of giving money to charity in a will, but most people don’t get round to it!

Transnational Giving in Europe

If you live in certain European countries [21 countries, currently] a tax effective system for donating to charities across many European frontiers enables donors resident in one of the participating countries to support Project Peru and other charities.

This is not part of the European Union processes and so is unrelated to ‘Brexit’ after 2020. For more information see http://www.transnationalgiving.eu

Giving Shares to Charities

Did you know that donating shares is one of the most tax-effective ways to give to charity?

Giving  to Project Peru means you can get Income Tax relief on the value of the shares as well as an exemption from Capital Gains Tax.

Up to 40% income tax relief is available when people donate shares to charities. So for example if you are a higher rate taxpayer and give £1,000 of shares to a charity your income tax bill will be cut by £400. Project Peru can accept large donations of shares or small numbers of unwanted shares that you may, yourself, for example, have inherited.

Project Peru would retain the option of either selling the shares immediately – or at a later date – in order to use the proceeds for our charitable purposes, or retaining the shares as an investment giving us income from the share dividends in future.