Income Tax (Earnings and Pensions) Act 2003 section 713

Donations to charity: payroll deduction scheme

Section 713 provides income tax relief for charitable donations made through a payroll giving (Give As You Earn) scheme, where an employer or other payer withholds amounts from PAYE income at the individual's request.

• An individual receiving PAYE income can ask the payer to withhold amounts as charitable donations, and the donations are deducted from the individual's taxable income
• The deduction applies to different types of PAYE income: employment earnings, specific employment income, pension income, and social security income
• For employment earnings, the relevant tax year is the year in which the donation is withheld; for pension and social security income, it is the year for which that income is taxable
• The relief can be denied under the tainted charity donations rules in section 809ZM of ITA 2007