Payroll Giving is a simple, efficient and flexible scheme, which allows you to donate to any UK registered charity of your choice by a direct deduction from your wage. All donations given in this way are tax effective so the charity receives your donation and the tax you would have paid on this amount.

Payroll Giving allows you to make donations to charity directly from your pay or company/personal pension. The donations are made after your National Insurance contributions are calculated but before Income Tax is worked out and deducted. Because of this, you only pay tax on what's left. This means that you get tax relief on your donation immediately - and at your highest rate of tax.

Example - higher rate tax and Payroll Giving

You pay tax at the higher rate of 40 per cent and authorise a monthly donation of £10. That means you save £4 (40 per cent of £10). The actual cost of the donation to you is £6.

Example - basic rate tax and Payroll Giving

You pay tax at the basic rate of 20 per cent, and authorise a monthly donation of £10. That means you save £2 tax (20 per cent of £10). The actual cost of the donation to you is £8.

You can use Payroll Giving if:

you are an employee and you get paid weekly or monthly through PAYE

you get a company and/or personal pension and your provider deducts tax through PAYE

Your employer or pension payer hands over your gift to a government-approved Payroll Giving Agency, which then passes the money on to your chosen charity. You do not have to tell your employer or pension provider which charities you support. Instead you complete a simple form for the Payroll Giving Agency, telling it where to send your donations. You can give anonymously - your chosen charity doesn’t need to know your details.