Medical and dental treatment and insurance

Copyright © 2026 LexisNexis
Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Medical and dental treatment and insurance

Copyright © 2026 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 ― 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+™
  • 12 Jan 2026 12:00

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

Popular Articles

Personal Tax

Income tax losses ― overview

Income tax losses ― overviewIncome tax losses can arise due to a number of reasons, but not all losses can be relieved against total income and some losses can only be set against certain types of component income. The table below is a summary of the main reliefs for income tax losses.Summary of

04 Mar 2021 12:19 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more Read more
Trusts and Inheritance Tax

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more Read more