Tax free health benefits

There is no requirement for employers to pay tax and National Insurance on certain health benefits covered by tax concessions or exemptions. For example, there is no requirement to report employees’ medical or dental treatment or insurance if they are a part of a salary sacrifice arrangement. 

In addition, the following health benefits can be provided tax free:

  • A maximum of one health-screening assessment and one medical check-up in any year.
  • Eye tests required by health and safety legislation for employees who use a computer monitor or other type of screen.
  • Glasses or contact lenses required by employees for working on computer monitors or other types of screen.
  • Medical treatment for employees working overseas. The employer must have committed in advance to pay for this treatment or must pay the provider directly for the employee’s treatment or insurance.
  • Medical treatment or insurance related to injuries or diseases that result from your employee’s work.
  • Medical treatment to help an employee return to work. This allows the employer to pay up to £500 in costs for an employee to return to work.

Planning note

Any medical or dental treatment or insurance provided that is not exempt must be reported to HMRC. Employers may be required to deduct and pay tax and National Insurance on these amounts.

Posted in Employee Benefits

Exeter Accountant MJ Smith & Co

Celebrating 25 years of excellence.

Free 1st Meeting
Fixed Fees
Free Support!

Find out more

Client Portal Login

Forgot Password?

Latest News

The VAT concept of business

The VAT system is policed by HMRC and there can be heavy penalties for breaches of the legislation. There are …
Read More

What is domicile?

Domicile is a general legal concept which in basic terms is taken to mean the country where you permanently belong …
Read More

Outline of special rules for use of vouchers and credit tokens

HMRC’s Employment Income Manual is clear that there are special rules when an employee receives goods or services by reason …
Read More

Twitter Feed