SE30052 – Dispensations: general (more)

Section 166 ICTA 1988

Before the Inspector can issue a dispensation the person paying the expenses or providing the benefit has to say what the circumstances are in which payments of a particular sort are made or what benefits are being provided. If there is reason to do so the Inspector can cancel a dispensation at any time.

Dispensations can also be given in respect of the provision of vouchers and credit tokens for employees whether or not they are within Part V Chapter II ICTA 1988 - see SE16180.

Where a dispensation has been given by the Inspector:

• the employer need not report the particular expenses or benefits covered by it on form P11D and
• the employee need not include them on his Income Tax Returns and
• they are not included in assessments or the PAYE coding of the employee.