HMRC offers a new facility
It is now possible for employers to apply for a dispensation online.
Having a dispensation means that the employer does not have to include certain employee expenses or benefits in the end-of-year return forms P11D or P9D. There is also no need to pay any tax or NICs on items covered by a dispensation. It therefore makes end-of-year reporting rather easier.
Dispensations are granted by HMRC, and to get one, the employer has make an application and supply various information
The HMRC website page on Dispensations gives more information about what items can and can’t be covered by a dispensation, and the conditions under which a dispensation will be granted. It explains how to apply and has links to the online and paper application forms.
You can apply for a dispensation at any time. In general, dispensations take effect from the date on which HMRC issues them. However, HMRC may agree that a dispensation can take effect from the beginning of the tax year in which the employer applied for it – so it may be worth applying now to get one to cover 2009/10.