Smart Giving

Giving tax effectively - through your payroll


Payroll Giving is a scheme that lets you make donations straight from your gross salary (before tax has been deducted).

This means you get immediate tax relief on the value of your donation. So, for a basic rate taxpayer wanting to give a £10 donation, it will only cost £8, or just £6 for higher rate taxpayers. Many employers also encourage the scheme by matching their employees' donations.

Payments are taken straight from your salary either as a regular monthly payment or as a one off gift. A small charge for administration is taken by the intermediary agencies that process payroll gifts, although some companies cover this fee as a donation.

All you need to do is choose how much you want to give and to which charity or charities, tell your payroll department and they will do the rest.

If you a UK taxpayer, paid through PAYE, your company is almost certainly eligible to offer Payroll Giving (they may refer to the scheme using a specific brand name, such as Give As You Earn).

Speak to your employer to see whether they offer a scheme, and if they don’t, ask them to consider setting one up.