What Is Payroll Giving?

All UK registered charities are eligible to receive donations through payroll giving. Payroll giving is often called “Give As You Earn (GAYE)” and is a UK-wide scheme that lets employees make regular donations to one or more charities directly from their salary before income tax is deducted.

As the donation is taken straight from the employees gross pay, the donation costs the giver less (as it’s made before tax), and the full amount reaches the charity.

For example, a £20 monthly pledge costs a basic-rate taxpayer just £16 but the charity still receives the full £20. Higher-rate taxpayers see even greater savings.

This is not donation processing via Gift Aid because it is taken from an employee's gross pay before income tax is deducted, which means a charity doesn’t need to claim the tax back from HMRC. 

Why Payroll Giving Matters

According to the Charities Aid Foundation, payroll giving has raised more than £2 billion for charities across the UK since it was set up in 1987.

For employees, payroll giving is attractive because:

• It’s easy — employees can easily opt in to payroll giving and payments are taken straight from pay without separate bank details.

• It’s tax-efficient.

• It’s flexible — donors can change amounts, stop giving or choose multiple causes. Plus if an employee retires or changes jobs then donations stop automatically. 

  
  

For charities, it provides a steady, predictable income stream that helps with planning and long-term impact.

For employers, offering payroll giving can enhance company culture. It shows employees that giving back is supported at every level, which helps boost morale, engagement and purpose.

There also other benefits to businesses such as:

• Employers have the option to match donations made by their staff. This helps demonstrate corporate social responsibility. 

• Businesses can offset the payments against profits and reduce their tax bill. 

• A business which supports payroll giving could enhance talent acquisition and employee retention, as research by the Charities Aid Foundation has found that 47% of employees would prefer to work for a business that donates to a charitable cause. 

  
  

How to Set Up Payroll Giving

If your organisation already offers payroll giving, signing up is simple:

1. Ask your HR or finance team for the payroll giving form.

2. Choose the charity or charities you want to support.

3. The deduction will be made automatically each payday.

   
   

If your workplace doesn’t yet have a payroll giving scheme, it might be easier to set one up than you think:

• Employers can contact an HMRC-approved payroll giving agency to get started.

• Agencies like Give As You Earn provide all the tools and support to launch and promote the scheme internally.

Introducing payroll giving can be a valuable addition to your employee benefits package particularly as research shows many staff want to work for values-led employers and are more likely to give when the pathway is clear and accessible.

A Win-Win for Everyone

Payroll giving is one of those initiatives where everyone benefits:

• Employees give more with less cost.

• Employers foster culture and purpose.

• Charities receive dependable support that helps them plan and deliver impact.

  
  

It’s straightforward, tax-efficient and deeply impactful, especially for charities that rely heavily on regular donations.

If you’re ready to make payroll giving work for your team, whether setting it up for the first time or helping employees sign up, these resources will help you get started with supporting causes that matter: 

• Charities Aid Foundation: ‘The basics you need to know about payroll giving’. 

• UK government: ‘Payroll Giving’ 

• Payroll Giving Month: Resources and Directory. 

  
  

For more information on supporting The Robin Cancer Trust please visit:  https://www.therobincancertrust.org/payrollgiving.