Exemption for welfare counselling

Welfare counselling services, often provided as part of an Employee Assistance Programme (EAP), include a range of facilities or treatments available for the benefit of employees. These services have been increasingly offered by employers to help employees in times of difficulty. See Simon’s Taxes E4.770A.

SI 2000/2080 provides an exemption for welfare counselling under ITEPA 2003, s 210.

The legislation does not define welfare counselling that is exempt, although it gives specific exclusions (see below). EIM21845 provides a list of the type of issues the exemption is intended to cover, including:

1. •

   stress or ill health

2. •

   problems at work (including conduct and disciplinary matters)

3. •

   debt problems

4. •

   alcohol and other drug dependency

5. •

   career concerns

6. •

   bereavement

7. •

   equal opportunities

8. •

   sexual abuse

9. •

   harassment and bullying

10. •

    personal relationship difficulties

11. •

    medical treatments, such as therapy, provided to the employee as part of the employer’s welfare counselling services ― from 6 April 2020

Benefits excluded from the exemption for welfare counselling

SI 2000/2080, reg 2(3) specifically excludes the following from the exemption for welfare counselling: