NIM05520 - Class 1 NICs: Expenses and allowances: HMRC Dispensations: Dispensation notice and letters

Although dispensations are no longer approved for tax years from 2016/2017 onwards, this lists what was issued for the former years:

• a dispensation notice
• the accompanying letter issued with a dispensation notice
• the letter refusing a dispensation.

The dispensation notice should be easy to recognise. It is usually headed “DISPENSATION FOR PARTICULAR EXPENSES PAYMENTS AND OTHER MATTERS”. And it specifies:

• the nature of the payments and benefits covered
• the employee(s) to whom the dispensation applies. For instance, this may be all employees, named individuals or a specific group of employees i.e. salespersons.