Form P11DX Application for dispensation for certain expenses payments and benefits in kind provides one of the ways in which employers can apply to their tax office for a dispensation, allowing them to avoid having to report many benefits and expenses on form P11D.

HMRC has now redesigned the form so that, in many cases, HMRC can make a decision about a dispensation application without the need to seek further information.

The new form asks first for an indication of the employees to be covered by the dispensation, i.e. all employees, employees excluding directors, directors only, or other specified groups of employees or individuals. It then asks for Yes/No answers to a series of questions about the five main areas for which a dispensation may be granted, namely

• travel and subsistence
• home telephone expenses
• entertainment expenses
• company credit/charge cards
• fees and subscriptions to professional bodies.

The questions are carefully worded so that, by answering Yes to the relevant questions, the employer is confirming that appropriate procedures are in place so that, if the expenses or benefits were reported on form P11D, the employee would be able to claim tax relief in full.

The only text box on the form is one that requires the employer to explain the means by which expenditure claims are controlled if expenses payments are not always independently examined.

...back to 27 April 2006


Further information:
P11DX - How to cut down on your paperwork: dispensations

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