Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Chapter EIM30095

Document Cited authorities 1 Cited in Related
Vincent
Published date22 May 2014
Record NumberEIM30095
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
Section 65(6) 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 For tax years 2016-17 onwards dispensations have been replaced by an exemption for amounts which would otherwise be deductible.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.

A dispensation continues in force until it is revoked unless a term is put to it when it is first given. The Officer of HMRC has the right to revoke it any time. Revocation should be recorded on the copy of the original dispensation.

Where a dispensation has been revoked and HMRC believes that the employer (or the person making expenses payments or providing benefits) has been negligent in operating a dispensation, or has misrepresented the facts, when applying for a dispensation, HMRC may make the revocation retrospectively to the date the dispensation was granted or wrongly applied.

Retrospective revocation may be necessary as well if a dispensation was applied for and granted by HMRC based on facts that were presented and accepted at the time, but the basis on which the expenses payments and benefits were provided subsequently changed. If after those changes a dispensation would not have been granted by HMRC, but the employer continued to provide expenses and benefits under the terms of the original dispensation, without informing HMRC of the change in circumstances, HMRC may decide that retrospective revocation is due to the date when the change occurred.

Where it is apparent that negligence or misrepresentation has taken place and expenses and benefits were provided under a dispensation when they should have been subject to tax and NICs, HMRC will pursues retrospectively the tax and NICs liabilities due when the expenses payments and benefits were originally provided.

...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT