Payroll giving PAYROLL GIVING What is Payroll Giving? Donating to charities tax-free directly through salary, Payroll Giving, is the most tax-efficient way to give. Payroll Giving donations are taken from pay after National Insurance but before tax. A donation of £5 a month would actually cost an employee £4 from their take-home pay (if they pay 20% tax) or £3 (if they pay 40% tax). For companies Your employees can easily make monthly contributions if your company has a Payroll giving system. Starting this scheme is easy. Check the GOV.UK portal for details. For employees Please check with your employer to find the best options for direct giving. Gift Aid is not applicable in this case but some companies apply Matching Gifts schemes, doubling their employees’ donations. This will all be tax exempt for you.