What’s the difference between Payroll Giving and Direct Debit/Gift Aid?
Payroll Giving comes directly from your gross pay (pre-tax), where as a Direct Debit to a charity is taken from your bank account. With Payroll Giving charities automatically receive the tax advantage, but with Direct Debit donations they have to claim back the tax (know as Gift Aid), often causing large admin bills. If you are a higher tax payer (40% or 50%) Payroll Giving is the only way you can give to charity and benefit from full tax relief.
