SE21122 - Benefits: making good by waiver of remuneration

A director or employee with earnings at a rate of £8,500 a year or more may wish to apply money emoluments, which he is treated under SE42260 as having received, to “make good” the cost of a benefit chargeable on him.

He can only do this in respect of emoluments which are received or treated as received after 5 April 1989 out of his net emoluments, that is after tax has been deducted under PAYE

The net amount applied in this way will reduce the “cash equivalent” of the benefit. It will not reduce the amount of the money emoluments which are assessable.