Coronavirus (COVID-19) - Chancellor confirms government re-think on tax treatment of Covid tests provided to employees

Coronavirus (COVID-19) - Chancellor confirms government re-think on tax treatment of Covid tests provided to employees

The Government is to introduce an exemption from income tax and NIC for coronavirus tests provided by employers to employees, for the tax year 2020–21.

The Chancellor has confirmed in a response to the Treasury Select Committee, that the government will introduce an exemption from income tax and NIC for coronavirus tests provided by employers to their employees.

HMRC had previously updated its guidance to confirm that coronavirus testing kits, and third-party tests, purchased by an employer and provided to its employees, would be treated as a taxable benefit in kind on the employee. The guidance did not mention frontline health and social care staff or other employees likely to need tests on a regular basis.

The guidance was quickly revised, this time to remove the section on coronavirus tests, suggesting a change of policy, particularly given the risks of deterring workers from taking employer-sponsored tests.

The Chancellor’s confirmation means that no taxable benefit will arise on employees where tests are provided during the 2020–21 tax year.

Source: How to treat certain expenses and benefits provided to employees during coronavirus (COVID-19) and Twitter - Treasury Committee

Subscription Form

Related Articles:
Latest Articles:

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login