Inconsistent dispensations

THE COMPLETION OF the form P11D can be an exhaustive and detailed process even if it concerns only the sole director of a one-man company. The requirement by HMRC for employers to complete forms P11D on a fiscal year basis rather than the business accounts year basis has added to the administrative burden.

However there is one small area where HMRC employers and taxpayers are all agreed that the administrative burden regarding P11Ds can be lessened.

Dispensations

The dispensation procedure is designed to relieve the obligation to include certain items on form P11D by a business where such a dispensation has been agreed between the business and HMRC.

The procedure is entirely statutory and is found in ITEPA 2003 ss 65 and 96. Section 65 relates to the main items to which a dispensation may apply and s 96 relates to vouchers or credit tokens. HMRC...