There are already exemptions from Income Tax and Class 1A National Insurance contributions for certain occupational health service spending by an employer, including the cost of annual health screening and medical check ups. The government is currently consulting on “how the tax system can support employers to increase provision of occupational health for their employees”. The government’s aim is to maximise economic growth and help reduce health-related absences.
According to ONS Labour Market statistics from June 2023, for every 13 people currently working there is one person on long-term sick.
The consultation is looking at expanding Income Tax and NICs exemptions for other medical benefits such as increased health screening to prevent and minimise absence in the work place. It is highlighted that this consultation should be considered together with the DWP (Department for Work and Pensions) and DHSC (Department of Health and Social Care) consultation which is looking at “non-fiscal levers in supporting greater occupational health provision”.
Both consultations close on 12 October 2023.
Links to the consultations are below:-
https://www.gov.uk/government/consultations/joint-hmt-hmrc-consultation-on-tax-incentives-for-occupational-health
https://www.gov.uk/government/consultations/occupational-health-working-better
The contents of this article is a general guide only at the date of publication. It is not comprehensive and it does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.
Joint HMT-HMRC consultation on tax incentives for occupational health
https://www.gov.uk/government/consultations/joint-hmt-hmrc-consultation-on-tax-incentives-for-occupational-health
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