The short version: Payroll Giving lets you donate to charity directly from your salary, before tax is calculated. You get tax relief automatically because the donation comes off your gross pay.
How does it work?
Your employer deducts the donation amount before calculating your Income Tax (but after National Insurance). So if you’re a basic rate taxpayer and donate £10, it only costs you £8. Higher rate taxpayers save even more.
Who can use it?
Anyone whose employer runs a Payroll Giving scheme and who’s paid through PAYE. You can donate to any UK registered charity or community amateur sports club.
How is it different from Gift Aid?
With Gift Aid, you donate the full amount and the charity claims back basic rate tax. Higher rate taxpayers claim extra relief through Self Assessment. With Payroll Giving, the relief is instant because the donation comes out pre-tax.
Is there a minimum?
That depends on your employer’s scheme. Some have minimum amounts, others don’t. The charity receives the full amount you specify, there’s no deduction for admin.
Want to give to charity tax efficiently? Ask us which method works best for you.
