Tax impact of waiving income or salaries

HMRC has provided advice on the tax implications for people who waive their rights to salaries or income to support their business or employer, or donate to a good cause during the coronavirus pandemic. 

It has suggested ways in which a tax charge on such waivers can be avoided. These include waiving salary or bonuses before they are paid, or waiving dividends before the right to receive them arises.  

It is possible to give back salary or bonuses to a business or employer after they have been paid but not to reclaim the income tax and National Insurance that would already have been deducted from the salary or bonuses on payment.