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HMRC internal manual

Employment Income Manual

The benefits code: what is meant by

Section 203(2) ITEPA 2003

“Making good” simply means giving something in return for the benefit. What is being made good is the expense incurred by the employer or other person providing the benefit. It follows that in order to make good that expense the employee will give money, or something that can be measured in money. Usually the employee will “make good”:

  • by a direct payment or
  • by deduction from salary or
  • by a suitable debit to the employee’s current account in the employer’s books and records.

Any of these methods is acceptable.

The giving of services by the employee, or anything that is not measured in money terms isnot “making good”, see Stones v Hall (60TC737). (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

As regards “making good” by waiver of remuneration see EIM21122.