What is Payroll Giving?
Payroll Giving (also known as Give As You Earn or workplace giving) is a flexible scheme that allows people to support any charity of their choice with a regular donation direct from their pay.
How does it work?
A regular monthly donation is deducted from your pay before tax has been calculated and as the tax that would normally be paid to the government can be gifted to the charity too, Payroll Giving allows UK employees to “give more for less”.
So each £1 you give will only cost you 80p, and if you're a higher rate taxpayer it will only cost you 60p.
The table below gives you a few suggested donation amounts and how much each will cost you depending on your tax bracket.
|Cost to you as a 20% tax payer||£4||£6||£8|
|Cost to you as a 40% tax payer||£3||£4.50||£6|