P11D Dispensation

A P11D Dispensation is an agreement with the tax authorities that removes the requirement to for business report certain expenses and benefits on form P11D each year; e.g. travel and subsistence, client entertaining, professional subscriptions.

In the absence of such an agreement all expenses and benefits provided throughout the course of each year must be reported to the Inland Revenue following the ends of each tax year; an administrative nightmare for both the employer and the employee when completing their self assessment tax return.

The risks for not having a P11D Dispensation include
• Penalties for each incorrect/incomplete form P11D.
• Increased risk of the business being selected for an Inland Revenue PAYE/NI investigation.

Inspired Employer Solutions Limited © 2007 Company Registration No. 4919077