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Payroll Giving

[ˈpeɪrəʊl ˈɡɪvɪŋ]



Payroll Giving is a method of making charitable donations that can bring some tax benefits. These donations can be set up to be automatic regular payments.

More detail:

Payroll Giving is a type of Charitable Donation that allows Employees to donate a part of their salary to charity of their choice.

If a donation is made using a Payroll Giving scheme, it is deducted from gross pay after National Insurance but before Income Tax has been removed. This means Taxable Income has been reduced and Income Tax obligations will be lower. Thus, Payroll Giving schemes are a Tax-Efficient method of donating to charities. It is an alternative to donating us Gift Aid.

Donations can be set up to be paid regularly but the charity must be on HMRC's list of approved charities.

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