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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.
06 Feb 2024
Government borrowing fell to £7.8 billion in December 2023 giving Chancellor Jeremy Hunt more scope to make the tax cuts he has hinted at in the Spring Budget.
Tax cut promises may need to be scrapped as a result of the UK being in an 'unfortunate economic and fiscal bind', the Institute for Fiscal Studies (IFS) has warned.
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