Does the dispensation relate just to the reporting on P11Ds? (as i am maybe suspecting)
or
is it ok to just pay amounts without any receipts as back up? and not report on P11Ds?
I have not encountered dispensations before.
I have seen the revenue correspondance and it is a bit vague. Just says plld dispensation.
AB
Replies (1)
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Yes, your suspicion is correct.
The Dispensation merely enables you to ignore those types of expenses when it comes to completing the P11D's.
The Dispensation has only been granted as a result of the IR being satisfied that sufficient internal controls are in place to ensure that only legitimate business expenses are being paid/reimbursed and that no tax loss is likely to arise as a result of the Dispensation.
The receipts/expenses claims must continue. The Dispensation letter normally advises that any changes to internal controls should be notified so that IR can confirm whether the Dispensation should continue.