Is Payroll Giving better than Gift Aid?

Charity-per-pound of net cost is the same under both schemes. Gift Aid always sends the charity 25% more for the same donation amount (and higher-rate donors reclaim via Self Assessment); Payroll Giving always costs you less out of pocket and gives relief instantly with no paperwork.

How much does £10 cost me through Payroll Giving?

A £10 payroll donation costs you £8 at basic rate, £6 at higher rate or £5.50 at additional rate, because it is taken from your salary before tax is applied.

Is this calculator free to embed on my website?

Yes. Employers, charities and publishers can embed it free — the embed includes a dofollow credit link to CharityCompare. Copy the iframe code from the embed section below.

Calculators

Payroll Giving vs Gift Aid

Which way of giving wins for you and the charity? Compare both schemes side by side at your tax rate — free, no sign-up.

Quick answer

For the same donation amount, Gift Aid always gives the charity 25% more. Payroll Giving always costs you less out of pocket. Charity-per-pound of your net cost is the same either way — pick Gift Aid for maximum charity value, or Payroll Giving for instant relief with no Self Assessment. Compare your figures below.

Monthly donation

Your tax band

Basic rate (20%)up to £50,270Higher rate (40%)£50,271–£125,140Additional rate (45%)over £125,140

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.

Embed this calculator — free for employers & charities

Add this exact calculator to your website with one line. Free, lightweight, includes a dofollow credit link to CharityCompare — that’s how the tool stays free.

Iframe embed code

<iframe src="https://www.charitycompare.org.uk/embed/payroll-giving-calculator" width="100%" height="820" style="border:0;max-width:100%;" title="Payroll Giving vs Gift Aid Calculator — CharityCompare" loading="lazy"></iframe>

Preview the embed →

Free to embed. Includes a dofollow credit link to charitycompare.org.uk — that is how the tool stays free. Embedding on a charity site never affects its Clarity Score.

How the two schemes differ

Gift Aid tops up your donation: the charity reclaims 25p per £1 from HMRC, and higher/additional-rate donors reclaim the band difference themselves via Self Assessment. Payroll Giving (Give As You Earn) takes the donation from your gross pay before tax, so the saving is instant — but the charity only receives what you give, minus any agency fee of 2–4%.

Payroll Giving participation has fallen to roughly £125m a year — a decade low — partly because few people know their employer’s scheme. If yours offers one with matched donations, that combination can beat either scheme alone.

Estimates only — not tax advice. Check HMRC guidance for your position.