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Scrapping dispensations

26 October 2015

Tax: Scrapping dispensations

Dispensations to employers for deductible expenses are on their way out

HMRC has recently confirmed that from April 2016 it intends to stop the long-standing practice of issuing dispensations to employers for deductible expenses – such as travel, related subsistence expenses and accommodation costs reimbursed to employees. Instead the department will shortly be introducing a statutory regime for the reimbursement of these expenses to employees. In effect this means that all existing dispensations in issue to employers will become invalid from April...

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