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HMRC internal manual

National Insurance Manual

Class 1 NICs: Expenses and allowances: HMRC Dispensations: Dispensation notice and letters

  • a dispensation notice
  • the accompanying letter issued with a dispensation notice
  • the letter refusing a dispensation.

The dispensation notice should be easy to recognise. It is usually headed “DISPENSATION FOR PARTICULAR EXPENSES PAYMENTS AND OTHER MATTERS”. And it specifies:

  • the nature of the payments and benefits covered
  • the employee(s) to whom the dispensation applies. For instance, this may be all employees, named individuals or a specific group of employees i.e. salespersons.