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Pillar

Payroll Giving

Tax-efficient charity donations straight from staff payslips.

Payroll Giving in the UK — what it is and why it matters

Payroll Giving (also known as Give As You Earn or GAYE) is the most tax-efficient way for an employee in the UK to donate to charity. The donation is taken from gross pay before income tax — so a basic-rate taxpayer giving £10/month actually parts with £8. A higher-rate taxpayer gives £10 for £6.

For employers, it is one of the simplest ways to offer a meaningful, no-cost-to-the-business benefit. You do not need a CSR department, a budget, or an HR system. You just need to register with an HMRC-approved Payroll Giving Agency.

What this pillar covers

Eight in-depth guides under this pillar:

Where Payroll Giving fits in the wider workplace giving picture

Payroll Giving is the donation half of workplace giving. The time half is employee volunteering — paid leave to volunteer for a cause. Many employers do both, and a growing number also match employee donations to amplify impact.

All articles in Payroll Giving

Frequently asked questions

What is Payroll Giving in the UK?

Payroll Giving (also called Give As You Earn or GAYE) is a HMRC-approved scheme that lets employees donate to UK charities directly from their pre-tax pay. The donation comes out of gross salary, so the employee gets income tax relief at their highest marginal rate immediately — a basic-rate taxpayer giving £10/month actually pays £8.

Is Payroll Giving compulsory for UK employers?

No. It is voluntary for employers and for employees. To offer it, an employer signs up with an HMRC-approved Payroll Giving Agency (PGA), which routes donations to the chosen charities and reports back to the employer.

Does running Payroll Giving cost the employer money?

Most agencies charge a small monthly fee per donating employee (typically 25p–£1) which the employer can absorb or pass on. Some employers also choose to match donations — see our guide to matched giving.