Health Screening
treatment is provided under a salary sacrifice scheme the charge to tax is the higher of the cost to the employer, less amounts made good, and the cash foregone.
No tax charge applies in the case of any cover specifically arranged to cover the employee during overseas business journeys. This will include cover for a spouse or civil partner if the spouse or civil partner has specific business duties in relation to the journey. There is, since 1st January 2015, an exemption of £500 towards a necessary medical intervention under the new “Fit for Work” scheme. There are certain restrictions to observe. See further details in “Health Screening” below. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS From 6th April 2020 the Government has extended the scope of services covered by the exemption. It now includes cognitive therapy treatment in appropriate cases. HEALTH SCREENING The provision of periodic medical checks/screening for employees should not be considered as a taxable benefit; however, where such checks are provided to family members who are not employees the cost of such checks would qualify as a chargeable benefit. Health screening is an assessment to identify employees who might be at risk of ill-health. A medical check-up is a physical examination by a health professional to determine the employee’s state of health. With effect from 14th August 2007, new regulations from HMRC established that where an employer provides up to one health screening, and/or medical check-up per year for an employee, the cost is exempt from tax provided such health screening or medical check-up is available to all employees, or to all employees identified in previous screening as needing a check-up. This provision replaced former guidance under trivial benefit provisions. Representations were made by employers, pointing out that many schemes now found themselves subject to a tax charge where none had existed before. Representatives pointed out that in many cases providing check-ups less frequently than annually and restricting such check-ups was necessary for certain employments, such as airline pilots and public service vehicle drivers. No printing, copying or reproduction permitted. HMRC agreed and by concession restored the original treatment for the whole of the 2007/2008 and 2008/2009 tax years. From 6th April 2009 HMRC finally formalised this concession such that the benefit is not taxable regardless of which employees are entitled to receive the benefit or how often. Use of Visual Display Units (VDUs) In cases where an employee is required to use a VDU as part of his or her normal duties, no chargeable benefit arises on: • an eyesight test and • cost of spectacles or contact lenses required solely for VDU use. Where a test is required under the Display Screen Equipment Regulations and specialist
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