Employers may offer Payroll Giving before tax has been deducted. The tax relief goes directly to the Charity chosen by the employee.

Key facts about the Payroll Giving scheme

  • It is a flexible scheme that allows donors to make charitable donations straight from their gross salary (before tax is deducted). For example, for a basic rate taxpayer to give £10.00, only £8.00 will be deducted from his or her pay. For a higher rate taxpayer, the deduction will be £6.00.
  • The employer passes on the charitable donation to a Payroll Giving agency, which in turn will make payment to the charity chosen by the employee.
  • Furthermore, many employers are encouraging the scheme by matching their employees’ donations.
  • Please advise your Gift Aid organiser or Parish Accountant should you join a Payroll Giving scheme. It will enable a check to be made that your parish or the diocese is receiving the donation.
  • Payroll giving does not require the donor/employee to complete a Gift Aid donation, since the income tax has been dealt with at source.