Payroll giving and tax relief

Payroll giving schemes are commonly referred to as give as you earn (GAYE). They allow employees to make donations to any approved charity direct as a deduction from pay and receive tax relief on the contributions, regardless of the amount donated (there are currently no statutory lower or upper limits). Pensioners can also use payroll giving to give to charity by direct deduction from their occupational pension.

Previously an employee could make donations to UK charities and to eligible organisations equivalent to UK charities in the European Union and the European Economic Area countries of Norway and Iceland. This was reflected in the definition of charity given in FA 2010, Sch 6, Part 1 and SI 2010/1904. However, non-UK charities no longer qualify for gift aid as the jurisdictional