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Chapter EIM30265

Document Cited in Related
Vincent
Published date22 May 2014
Record NumberEIM30265
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
S289C ITEPA 2003

An approval notice continues in force until either the expiry of its term, a maximum of 5 years, or it is revoked. An Officer of HMRC has the right to revoke an approval notice given under s289B ITEPA 2003 by giving a further notice (a ‘revocation notice’).

A revocation notice may revoke approval from either a day on which the approval took effect, or a later date specified in the notice.

HMRC may make the revocation retrospectively to the date the approval notice was granted or wrongly applied where it believes that the employer (or the person making the expenses payments) has been negligent in operating an approval notice, has misrepresented the facts when applying for an approval notice, it is apparent that the rate paid under the approval notice is not representative of the expenses employees are actually incurring, or if there is evidence of a widespread or significant failure by employees to retain evidence of their spending.

Retrospective revocation may also be necessary if an approval notice 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 were paid or reimbursed subsequently changed. If after those changes an approval notice would not have been granted by HMRC, but the employer continued to pay or reimburse expenses under the terms of the original approval notice, 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 were paid or reimbursed under an approval notice when they should have been subject to tax...

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