We are asked about umbrella company dispensations almost every day so I thought I would add something here to try and help clarify the situation.
All umbrella companies have dispensations - if we didn't we would spend all our time filling in forms for the Inland Revenue Normally when expenses are paid the accountant is required to complete a P11D; a dispensation just means that this will not be necessary for those expenses which it covers.
An umbrella company's dispensation does not dictate what expenses you can or cannot claim. It is merely a list of expenses that your umbrella company is not compelled to record on a P11D.
If the dispensation has specific figures on it for different types of expenses it does not mean that you can claim up to that amount regardless of what you spend. e.g. if accomodation is shown as £95 per night it does not mean you can claim £95 if you have only spent £60.
If you claim expenses you will definitely and without question need to keep receipts - a dispensation means that your umbrella company does not have to present receipts to the Inland Revenue, it does not mean that you don't need them. And it will be you that will be penalised if you falsify expense claims and not your umbrella company!
Hope this helps