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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: specialist employer compliance: dispensations - inaccuracy discovered

If during the consideration of a dispensation application an inaccuracy is discovered that is not appropriate for a dispensation, for example the employer is applying for a dispensation for an expense that is not a legitimate business expense. The SEC should seek recovery, including the consideration of penalties.

See COG907250 - Customer Service - General and COG915690 - Recovery from Employee and Directors

Any Tax, NIC, Interest and Penalties recovered following this process should be recorded on ECS as an Employer Amendment.

In Local Compliance and PT International a compliance revenue claim under Broader Coverage code M04 should be made.

Issues arising on LB cases will be referred to the dedicated tax specialist / CRM. In the event of an intervention being made, an entry should be made on core system.

Where the employer declines to make payment a report giving full details of the issue and the potential tax / NICs loss should be sent to

  • the CRM where one is appointed
  • RIS in all other cases.