How to treat certain expenses and benefits provided to employees during coronavirus

HMRC has updated its guidance about taxable expenses and benefits when they are paid to employees because of coronavirus and how to report them to HMRC.

HMRC has updated its guidance about taxable expenses and benefits when they are paid to employees because of coronavirus and how to report them to HMRC.

Information about ‘coronavirus (COVID-19) tests’ has been added.

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 for employed healthcare workers and other eligible front-line staff who get a test through this programme, there is no tax due and employers do not need to report a benefit to HMRC.

If employers are providing antigen testing kits to 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. Similarly, employers and their employees will not be liable to any Income Tax or National Insurance contributions, where an employee receives money from their employer for obtaining a test.

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_medium=email&utm_campaign=govuk-notifications&utm_source=5753c94e-3d3a-4b8b-8d28-ffc8ff7a132c&utm_content=daily

Exeter Living Awards Accounting and Tax Services for Landlords

© 2025 Peplows. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Peplows Limited Registered in England Company Number: 03133714. Regulated for a range of investment business activities by the ICAEW.
Registered Office: Moorgate House, King Street, Newton Abbot TQ12 2LG. A list of Directors is available at the Registered Office.
Peplows Audit Limited Registered in England Company Number: 16058884. Registered to carry on audit work in the UK by the ICAEW.
Registered Office: Moorgate House, King Street, Newton Abbot TQ12 2LG. A list of Directors is available at the Registered Office.
Details about our audit registration can be viewed at www.auditregister.org.uk, under reference number C011007443