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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: Employment Status & Intermediaries (ES&I): dispensations - revoking dispensations

Dispensations do not apply after 6 April 2016

A dispensation continues in place until it is revoked unless it is otherwise restricted when it is first given.

HMRC has the right to issue a notice to revoke a dispensation (Word 27kb) at any time under Section 65(6) ITEPA 2003.

Any revocation must be recorded on the copy of the original dispensation, ECS, EBS and any local recording system (COG907170).

In some cases, revocation may be made retrospectively. The earliest date a revocation can be effective from is the date of issue of the dispensation. Where a dispensation has been revoked retrospectively HMRC can, in some circumstances, recover tax on items provided under the terms of the dispensation.

Where retrospection is considered to be appropriate the guidance at EIM30095 must be followed.


Before revoking a dispensation for earlier years an ESO must seek agreement at HO or above or from the CRM if one has been appointed.

Where it is considered that retrospective recovery is appropriate authority is required at Grade 7 or above or from the CRM where one has been appointed.

Where a dispensation is to be revoked the impact on the business should be discussed with the employer when deciding when changes to systems can be introduced (COG907080).