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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: compliance revenue recording: dispensations applications

Where during the consideration of a dispensation application received direct from the employer an item is discovered that is not appropriate for a dispensation you should, consider whether a compliance check should be carried out and, if not

  • register on Caseflow as

    • Compliance Check type - Other Compliance Check
    • Inaccuracy Category - Employer Issues
    • Inaccuracy Description - Employer Errors
    • in LB as a partial review
  • calculate and pursue any underpayment of tax NICs and interest
  • consider behaviours and penalties, see COG914070 
  • recover the amount due by a Class 6 contract settlement and / or current year adjustment as appropriate
  • where appropriate calculate any current year adjustment, for example, to the 5 April of the relevant year, and extrapolate this for the following 12 month period, for example, 6 April to 5 April of the following year and record both periods as current year adjustment
  • consider Future Revenue Benefit (COG915640)
  • record the amount of recoverable underpayment, interest and penalties (unless suspended) on Caseflow using the appropriate inaccuracy category and settlement type.

The compliance revenue scored must be supported by a detailed auditable calculation.


A compliance check is commenced on 16 June 2009, which is the ‘current year’.

The check reveals that a dispensation is in force whereby expenses payments exceed the rates suggested by ‘Benchmarking of scale rates’. In December 2009 an agreement is reached that new rates will come into force.

Although technically, the current year is 2009-10 compliance revenue is scored for the period December 2009 to 5 April 2010 and 6 April 2010 to 5 April 2011.