GIVE AS YOU EARN
What does £100 of Payroll Giving actually cost?
Payroll Giving, also called Give As You Earn or GAYE, deducts the donation before Income Tax. It does not normally reduce National Insurance or student-loan deductions.
| Marginal Income Tax rate | £100 donation may reduce bank pay by |
|---|---|
| 20% | £80 |
| 40% | £60 |
| 45% | £55 |
These examples assume the whole donation sits within one tax band. If it crosses a threshold, the relief is split across rates. Payroll Giving agencies may also deduct a fee unless the employer covers it.