Counselling services

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

Counselling services

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

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.

In its Spring Budget 2013 the government announced that it will consult on incentivising employer investment in and provision of occupational health services through the tax system. This may include an exemption for tax and NIC for the benefits in kind legislation in relation to occupational health services or a potential super-deduction style relief for businesses who provide services to their employees.

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

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  • 25 Nov 2025 10:40

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

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