HMRC guidance on optional remuneration arrangements, waiving salary and waiving rights to dividends


  1. Optional remuneration arrangements
  2. Waiving salary
  3. Waiving dividends

Optional remuneration arrangements

HMRC has updated the section on transitional provisions in its draft guidance (Optional remuneration arrangements) on the changes to the optional remuneration arrangements rules in FA 2017 to reflect that an arrangement is not regarded as varied if the amendment is caused by the coronavirus (COVID-19). The equivalent page in the Employment Income Manual has not yet been updated to reflect this change. HMRC has made the same change in its guidance on salary sacrifice for employers (Salary sacrifice for employers).

See the Optional remuneration arrangements guidance note.

Waiving salary

HMRC has published guidance for those waiving salary during the coronavirus pandemic either to support their business or a charity. In summary, any waiver must take place prior to the payment being made and prior to it being due.

See the Struggling businesses ― how to ease cash flow, Setting up a salary sacrifice arrangement and Payroll giving guidance notes.

Waiving dividends

HMRC has published guidance for those waiving dividends, explaining the process and timing.