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Dispensations

A Dispensation is a notice issued by HM Revenue & Customs (HMRC) that removes the requirement for employers to report specified business related expenses at the end of the year on their employees’ forms P11D.

Currently, if an employer does not have a dispensation, all expenses reimbursed to employees or paid on their behalf must be reported annually on a form P11D. This may involve hours of work analysing expense claims. Failure to do so could result in HMRC imposing penalties for incomplete returns. The penalty can be as much as £3,000 per return.

To reduce the burden of completing forms P11D, the employer can apply for a dispensation. HMRC will grant the dispensation if they are satisfied that the employer is maintaining adequate records and that all expenses are properly vouched and authorised. The expenses that are commonly included in a dispensation include:

  • business travel and subsistence
  • business entertaining
  • business telephone calls
  • professional subscriptions.

Once the dispensation is place, it remains valid for as long as the expense controls and authorisation processes are maintained or it is withdrawn by HMRC. 

Why should you contact us?

We have a dedicated team, who have a significant amount of experience who can assist you in the whole process from the initial application through to obtaining the dispensation agreement with HMRC. 
 


 


 

David Daly

Head of National Employers' Advisory Team 

David has been involved in employment taxation for more than 35 years. He specialises in remuneration planning, devising and implementing employee share incentive schemes and advising on salary sacrifice arrangements. More   

 

Steve Livingston

Partner 

Steve is the Tax Partner in our Manchester office. Steve's main focus is on providing timely and proactive tax advice to companies and Directors throughout their business lifecycle with an emphasis on share based reward. More 

Susan Ball

Director 

Susan has over 20 years experience working extensively in the employment tax, investigations and reward field. She deals with all aspects reward planning including share schemes and salary sacrifice, as well as compliance and investigations. More 

  

Simon Warne

Partner

Simon is a Tax Partner in the Kent office. His experience includes remuneration and pension planning to avoid the higher marginal rates and advising on the Construction Industry Scheme. Simon advises on the interaction of UK employment taxes with personal and corporate tax, including international aspects and managing HM Revenue and Customs enquiries. More

 

Brian Robson 

Senior Manager  

Brian specialises in advising independent schools and not for profit organisations. His experience covers all aspects of employee taxation in particular PAYE, National Insurance and benefit-related matters. More  

 
 

Stuart Weekes

Partner

Stuart is a Tax Partner based in the Thames Valley office. He works with businesses and other organisations from a wide range of sectors and disciplines including start ups, larger privately owned businesses, corporates and not for profit organisations. Advising on and implementing all forms of management incentives, ranging from cash bonus plans to tax-efficient schemes. More

 

Colin McCullough

Tax Senior   

Colin advises businesses and not for profit organisations on all matters relating to employee taxation including payroll, P11D's, dispensations and PAYE Settlement Agreements. More 

  

Karen Goodwin

Manager 

Karen is a Manager in Cheltenham and is responsible for employment and benefit related matters including overseeing the completion of employers' end of year returns of expenses and benefits and managing the payroll department in Cheltenham office. More 

 

Andrew Learmond 

Tax Senior 

Andrew specialises in not for profit organisations, carrying out reviews of clients compliance procedures to identify areas of risk and advising on how to correct any compliance errors. More  

  

Paul Edwards

Director

Paul is a director in our Midlands Office. He has worked in tax for more than 35 years, and has wide-ranging experience of advising corporates, business owners and other individuals in tax. He has specialised in recent years, providing PAYE Health Checks, compliance and reward planning advice. More 

Please call us on 020 7842 7197 if you have any employer related queries. Alternatively complete our enquiry form and one of our specialists will contact you.

 

Contact Us
David Daly
London, UK
+44 (0)20 7842 7364