Dispensation
jewels.p
Registered Posts: 1,774 Beyond epic contributor 🧙♂️
If it states that a dispensation is in force do we still need to include the expenses when we are preparing the computation of taxable income?
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Comments
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No if it says there's a dispensation you can exclude it completely from your tax return and any computations. If there are expenses without a dispensation that are classed and allowable and re-imbursed by the employer then this is added on as a benefit and then taken off again as an allowable expense.0
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what kind of despensation could it be and where would it appear? my book says nout about dispensations0
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what kind of despensation could it be and where would it appear? my book says nout about dispensations0
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It's kind of an agreement the company has with HMRC over allowable expenses and they agree in advance that they will only pay for allowable expenditure. It's for stuff like travel for business (maybe a train ticket or something) and expenses that are wholly, exclusively and necessarily for the duties of employment.
It'll be in the benefits in kind section if it appears anywhere and basically if they say £x amount was re-imbursed by the employer and a dispensation is in force, it basically means you can just ignore it and leave it out of the tax computation all together.0 -
excellent, thanks
i have a question i have asked elsewhere and not yet got an answer. on the total tax income liabilty the amount for property is £3290, but then the personal allowance has been taken off, so the total tax liabilty is NIL - where does the personal allowance come from?0 -
Is there any other income like employment income or just property as main income? If it's just property I should imagine it's you £6,475 personal allowance and as the £3,290 is below that, it's reduced to nil.0
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no i have worked out the taxable gain for the year from the previous question, then this one on property.
i will carry on and see if the next on is the same, thanks
tracy0
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