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P11d Dispensation Agreement

Until 5 April 2016, employers were required to apply for a P11d dispensation agreement from HMRC if they did not provide benefits in kind but reimbursed expenses to their employees that were not taxable such as business mileage. Businesses needed to apply in writing, letting HMRC know that they would not put reimbursed expenses onto P11d forms or would not be submitting them at all.

Since April 2016, dispensation agreements were removed and only benefits in kind need to be declared to HMRC.


Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in this article is legally correct but it is for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional because mistakes can result in penalties.