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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Supporting Guidance: employer compliance: guidance by subject: Employment Status & Intermediaries (ES&I): dispensations - group of companies - pre 6 April 2016

This page only applies prior to 6 April 2016

Where a group of companies exists and a dispensation application is made covering all or many companies in the group then the application should be dealt with by:

  • the Employment Status & Intermediaries (ES&I) or
  • LB specialist team covering the parent company.

Where only part of the group applies for a dispensation and not the parent company the Employment Status & Intermediaries (ES&I) dealing with the subsidiary companies should contact the team dealing with the parent company to determine who should proceed with the application bearing in mind the need to liaise with PT International Expatriate Teams where Inward Expatriates are present (COG907180).

Dispensations should only be granted for

  • subsidiaries more than 51% owned, and
  • if the ESO or LB Specialist is satisfied that all the companies operate the same or equally robust systems of control of expenses payments.

If the ESO or LB Specialist is not satisfied dispensations should be limited only to the companies with adequate controls in place.

Where there is an existing dispensation in place and a company joins the group a new application must be made and

  • a new dispensation issued identifying the company/activities to which it relates or
  • a signed ‘letter of adherence’ (see below) obtained.

Letter of adherence - to Group (Word 27kb)

Letter of adherence - to Subsidiary (Word 27kb)