If you pay tax through PAYE (Pay As You Earn), Payroll Giving (also known as Give As You Earn, GAYE) offers a simple way to reduce the cost to you of making regular gifts to charities.
Your gift is made after National Insurance contributions but before Income Tax is deducted. You pay tax on what’s left so you get tax relief on your gift immediately at your highest rate of tax.
If your employer or company or personal pension provider runs a Payroll Giving Scheme, you simply authorise them to make a gift to Aston from your salary or pension before deducting any tax.
So for example, a donation of £15 to the charity of your choice will be deducted from your salary and go directly to them with no administration costs, and the cost to you in your salary will be £12 (assuming you are a 20% taxpayer, see the table below for other examples):
| ||Your donation ||Amount deducted from your salary |
|Amount charity receives |
|20% taxpayer || £15 ||£12 ||£15 |
|40% taxpayer || £15 ||£9 ||£15 |
|50% taxpayer || £15 ||£7.50 ||£15 |