Dispensation from HMRC - do we need evidence?

Savvy_Sue

This is going to sound a bit daft, but here goes.

I work for a small charity, and I know we have a Dispensation from HMRC which means we don't have to do a P11D for everyone at work each year, because the only expenses we pay are refunding legitimately incurred expenses, eg travel.

I remember getting this Dispensation, in one of the very first years after I started working there, when the payroll people sent me a pile of forms to complete all of which said 'Nil', and I said "surely there's an easier way". Never been sent P11Ds to complete since.

We've changed payroll provider at least once since then, probably twice, and I've never been troubled by piles of P11Ds since, but my manager asked today if we had evidence of this Dispensation, and expressed surprise that our auditors had never asked to see it.

So, how would I 'prove' that we have this Dispensation?

Thinking about it, is there a section we sign on one of the End of Year forms which confirms we don't pay expenses which would be taxable?

Savvy_Sue

I suspect that we got this so many years ago that any paperwork HMRC sent will have been archived, and as I don't know which year to start looking finding it wouldn't be a trivial process, so asking for a copy is probably the way to go then!

lavalamp

Our company applies for the dispensation each year - have you only done it the one time?

ETA: Maybe we just confirm to our accountants each year that nothing has changed rather than applying if I think about it. Ignore me :-)

Savvy_Sue

lavalamp wrote: »

ETA: Maybe we just confirm to our accountants each year that nothing has changed rather than applying if I think about it. Ignore me :-)

I think we may be doing this. My manager's right: I think our auditors would have picked up on this, and as it was the payroll company who initially sent the heap of P11Ds I think they know what they're doing too and are happy that we have a dispensation.

I've found a (very) old P35 online, and it does ask if forms P11D are due or not, so I think we are covered. I'll see if I can satisfy my manager with that.