Payroll Giving, also known as Give As You Earn (GAYE), is an easy, and tax effective way for employees to make regular donations through their salary, so it costs you less to give more.
This enables employees to give to us straight from their gross salary (before tax is deducted) giving immediate tax relief on your donations. Anyone whose pay is taxed through PAYE can donate through Payroll Giving.
Payroll Giving is organised and managed through employers, so employees will need to check with their HR department to make sure that your business offers Payroll Giving. If you do, then employee’s donations through their salary can be arranged.
Employees that pay the basic tax rate, for every £1 they earn, 20p is paid in tax. If employees pledge £10 a month, then we receive the full amount but only £8 will be deducted from their net pay.
If employees pay income tax at the higher rate of 40%, if they pledge £10 a month, only £6 would be deducted from their net pay, and at the super rate of 50%, only £5 would be deducted.