HOW TO TREAT COVID-19 RELATED BENEFITS PROVIDED TO EMPLOYEES

by | Jul 14, 2020

This guidance has been updated to reflect the controversy that Covid-19 tests were “reported to be taxable” in the press, on the employee as a benefit in kind. Coronavirus tests provided by the government, as part of its national testing scheme, are not treated as a benefit in kind for tax purposes. 

This means that if you employ healthcare workers and other eligible front-line staff who get a test through this programme, there is no tax due and you do not need to report a benefit to HMRC. 

If you’re providing antigen testing kits to your employees, outside of the government’s national testing scheme, either directly or by purchasing tests that are carried out by a third party, no Income Tax or Class 1A National Insurance contributions will be due. 

The Government is legislating for this through regulations, and guidance will be updated shortly.

See: https://www.gov.uk/guidance/how-to-treat-certain-expenses-and-benefits-provided-to-employees-during-coronavirus-covid-19?utm_source=04461678-a77d-4e74-9d59-9813c6b763f4&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

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