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donations through payroll system are said to be deducted from gross pay before PAYE,so is the donations deducted in income tax computation as ‘deducted tax at source’?
Donations made under the payroll deduction scheme are simply a deduction from employment income within the income tax computation. In practice how the tax relief is given is the same as for contributions into an occupational pension scheme – see OT course notes chapter 10 page 69. There is no income tax deducted at source here.
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