Part 3Employment income: earnings and benefits etc. treated as earnings

Chapter 2Taxable benefits: the benefits code

The benefits code

65Dispensations relating to benefits within provisions not applicable to lower-paid employment

1

This section applies for the purposes of the listed provisions where a person (“P”) supplies F4an officer of Revenue and Customs with a statement of the cases and circumstances in which—

a

payments of a particular character are made to or for any employees, or

b

benefits or facilities of a particular kind are provided for any employees,

whether they are employees of P or some other person.

2

The listed provisions” are the provisions listed in section 216(4) (provisions of the benefits code which do not apply to lower-paid employments).

3

If F4an officer of Revenue and CustomsF2is satisfied that no additional tax is payable by virtue of the listed provisions by reference to the payments, benefits or facilities mentioned in the statement, F1the officer must give P a dispensation under this section.

4

A “dispensation” is a notice stating that F4an officer of Revenue and CustomsF3agrees that no additional tax is payable by virtue of the listed provisions by reference to the payments, benefits or facilities mentioned in the statement supplied by P.

5

If a dispensation is given under this section, nothing in the listed provisions applies to the payments, or the provision of the benefits or facilities, covered by the dispensation or otherwise has the effect of imposing any additional liability to tax in respect of them.

6

If in their opinion there is reason to do so, F4an officer of Revenue and Customs may revoke a dispensation by giving a further notice to P.

7

That notice may revoke the dispensation from—

a

the date when the dispensation was given, or

b

a later date specified in the notice.

8

If the notice revokes the dispensation from the date when the dispensation was given—

a

any liability to tax that would have arisen if the dispensation had never been given is to be treated as having arisen, and

b

P and the employees in question must make all the returns which they would have had to make if the dispensation had never been given.

9

If the notice revokes the dispensation from a later date—

a

any liability to tax that would have arisen if the dispensation had ceased to have effect on that date is to be treated as having arisen, and

b

P and the employees in question must make all the returns which they would have had to make if the dispensation had ceased to have effect on that date.