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.