Payroll Giving (Give As You Earn)
- Charity receives /yr
- £600
- Net cost to you /yr
- £360
- Effective saving
- £240
Taken from salary before tax — relief is instant, no Self Assessment needed.
Lower net cost
Gift Aid donation
- Charity receives /yr
- £750
- Net cost to you /yr
- £450
- Effective saving
- £300
Charity reclaims 25% and you reclaim 20% via Self Assessment.
More to charity
Verdict: for the same donation amount, Gift Aid sends the charity £150more (£750 vs £600), while Payroll Giving costs you less out of pocket (£360 vs £450/yr). Charity-per-pound of net cost is the same either way — pick Gift Aid for maximum charity value (if you file Self Assessment at higher/additional rate), or Payroll Giving for instant relief with no paperwork.
Estimates only, not tax advice — 2025/26 UK rates (England & Wales). Payroll Giving requires your employer to run a scheme; agency fees of 2–4% may apply. Figures: HMRC Gift Aid and Payroll Giving guidance. Calculator by CharityCompare — free to use and embed.