Income Tax (Earnings and Pensions) Act 2003 section 65

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

Section 65 allows HMRC, in defined circumstances, to disapply the benefits code for specified payments, benefits or facilities provided to or for employees who are not lower-paid, thereby reducing administrative burdens on employers and employees.

• Where HMRC is satisfied that certain conditions are met, it may issue a dispensation covering specified payments, benefits or facilities, removing them from the scope of the benefits code.
• A dispensation reduces the administrative burden on those responsible for payroll and on HMRC, and means less information needs to be included in the employee's self-assessment return.
• The dispensation must be issued as a written notice to the person who applied for it, formalising both the common name for the authorisation and the requirement that it be in writing.
• HMRC may revoke a dispensation by giving notice to the person to whom it was originally granted.