Small Charitable Donations Act 2012 Schedule paragraph 5

The gift must not be a sum falling within section 713(3) of the Income Tax (Earnings and Pensions) Act 2003

Schedule paragraph 5 establishes that donations made through a payroll giving scheme cannot qualify as small charitable donations eligible for top-up payments.

• Donations made via payroll deduction (Give As You Earn) schemes are excluded from the small charitable donations scheme
• Payroll giving involves an employer deducting charitable donations directly from an employee's pay before tax
• These donations already receive tax relief at source, so they cannot also attract a top-up payment under this Act
• Charities must ensure that amounts received through payroll giving agencies are not included in their small donations claims