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HMRC internal manual

Employment Income Manual

Dispensations: employers should be encouraged to apply for dispensations

Section 65 ITEPA 2003

The guidance on this page applies for the tax years up to and including 2015-16.  For tax years 2016-17 onwards dispensations have been replaced by an exemption for amounts which would otherwise be deductible. See EIM30200 onwards.

Including expenses on forms P11D, where they could be covered by a dispensation, can bea burden for the employer. It also means more work for HMRC on processing forms P11D.Employers should be encouraged to apply for dispensations where appropriate.

Give dispensations that are applied for whenever the criteria for giving them are met (see EIM30055).

Dispensations should not be limited to large firms. Give them regardless of the number ofemployees to be covered.