Medical and dental treatment and insurance

Copyright © 2025 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Medical and dental treatment and insurance

Copyright © 2025 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

Introduction

The provision of medical related benefits to employees is one of the most common benefits provided by employers. If an employer provides insurance or pays for medical treatment for an employee, an income tax and NIC liability usually arises.

This guidance note sets out main points to consider in relation to employer health-related matters. In addition, the Client factsheet ― tax treatment of employer payments toward employee health issues provides a brief summary of some of the main points to consider, and may be adapted as an aide memoire, for use by clients who are responsible for organising or reporting relevant payments.

Medical insurance

An employer may take out a medical insurance policy to cover their employees, if so, such insurance cover is a taxable benefit. Insurance taken out to cover members of an employee’s family is similarly a benefit taxable on the employee.

Any claim made under such a policy for treatment is not a taxable benefit in itself as the taxable benefit arising to the employee is the insurance premium as

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 09 Apr 2025 05:40

Home/ Tolley Tax Guidance/ Employment Tax / Providing benefits to employees

Popular Articles

Owner-Managed Businesses

Sales, advertising and marketing

Sales, advertising and marketingExpenditure on sales, advertising and marketing activities may include amounts which are disallowable for the purposes of calculating trading profits. This may be because the expenditure is:•capital in nature (see the Capital vs revenue expenditure guidance note)•not

14 Jul 2020 13:28 | Produced by Tolley Read more Read more
Value Added Tax

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more Read more
Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more Read more