Payroll giving

Copyright © 2025 LexisNexis
Produced by Tolley in association with Vince Ashall
Employment Tax
Guidance

Payroll giving

Copyright © 2025 LexisNexis
Produced by Tolley in association with Vince Ashall
Employment Tax
Guidance
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Payroll giving is a highly tax-effective method of giving to charity, and uniquely gives employers a platform to encourage and champion philanthropy among their employees. There is no mandatory requirement for employers to set up a payroll giving scheme or for employees to participate.

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

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Vince Ashall
Vince Ashall linkedinicon

Payroll Consultant & Trainer at VA Payroll Services

Involved in payroll for more years than I care to remember! Initially in the NHS, where i oversaw the development of the NHS's bespoke payroll system (SPS Standard Payroll System), and latterly in the private sector.   Served for 13 years as a MNT for a private sector defined benefit pension scheme. Have had articles published in payroll publications and and provide updates for various publishers.   Fellow of the CIPP and gained a MSc in Payroll & Business Management in 2002. Now a self employed payroll and pensions consultant

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  • 14 Jul 2025 06:11

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