Payroll giving (Give As You Earn) lets you donate from your gross salary before income tax and National Insurance are deducted — saving you more than Gift Aid alone. Use this calculator to compare the true net cost of both methods.
Calculate Your Payroll Giving Savings
Frequently Asked Questions
What is payroll giving?
Payroll giving (also called Give As You Earn or GAYE) lets you donate to charity directly from your gross salary before tax and National Insurance are deducted. This means every £1 you give costs you less than a pound in take-home pay.
How does payroll giving save more than Gift Aid?
With Gift Aid the charity reclaims basic-rate tax on your donation, but you still pay NIC on the money you earn. With payroll giving the donation comes out before NIC is calculated, so a basic-rate taxpayer making £100 donation pays only £72 net (saving 20% tax + 8% NIC), compared to about £80 via direct debit Gift Aid.
Can higher-rate taxpayers benefit from payroll giving?
Yes. Higher-rate (40%) and additional-rate (45%) taxpayers save both their marginal income tax rate AND their NIC rate on a payroll gift, making it extremely tax-efficient. Via standard Gift Aid they must claim the extra relief through self-assessment, whereas payroll giving delivers relief automatically at source.
Does payroll giving count for the charity the same as Gift Aid?
The charity receives the gross donation either way. With Gift Aid the charity claims 25p per £1 donated from HMRC. With payroll giving the employer passes the full pre-tax donation directly, so the charity receives the same amount without needing to claim from HMRC.
How do I set up payroll giving?
Ask your employer\'s payroll or HR department to set up a payroll giving arrangement. Employers must use an HMRC-approved Payroll Giving Agency (PGA). There is no minimum donation amount, and you can change or cancel the arrangement at any time.