would have filed using the i-form on time but were prevented from doing so; and file by 4 th August 2013.
Employers who have been held up by the i-form problems should submit their forms by 4 th August. If they do this but are issued with a penalty they should write to the address below and explain that they would have filed on time but were prevented from doing so by the problems with the i-form. Provided HMRC are satisfied, the penalties will then be cancelled. HMRC do not recommend that employers contact them before they have successfully filed their forms, and HMRC will not be able to cancel the penalties over the phone.
Customer Operations Employer Office BP4009
Chillingham House Benton Park View Newcastle Upon Tyne NE98 1ZZ
CIPP SURVEY – TAX RELIEF FOR EMPLOYER EXPENDITURE ON HEALTH-RELATED INTERVENTIONS
15 July 2013
On 20 March 2013 the Chancellor of the Exchequer announced that employers helping their employees to return to work after periods of sickness will get new support through the tax system. In 2014 the government will be introducing a Health and Work Assessment and Advisory Service that will conduct a health assessment when an individual has been on sick leave for four weeks, and provide advice on how they can return to work. The proposal is that employer expenditure on medical treatment and vocational rehabilitation targeted at keeping sick employees in work, or speeding their return to work, should attract tax relief. The government says that this will be brought about by a new targeted tax exemption to apply where the new service recommends health-related interventions to help an employee return to work. When an employer funds such interventions, the expenditure, up to a cap of £500, will be exempt from income tax and National Insurance contributions (NICs). The government wants to make the exemption simple to administer, to encourage employers to engage with the well-being of their employees and fund treatment to help them return to work after a period of ill-health. Under current rules, an employer who arranges and pays directly for health-care for an employee is providing a benefit in kind on which the employee will be liable to income tax and the employer will pay Class 1A NICs. Alternatively, if an employer either reimburses an employee’s expenditure or pays a bill incurred by an employee, this is treated as a payment of earnings on which the employee is liable to income tax and employee Class 1 NICs, and the employer will pay Class 1 employer NICs. Under the new relief, there will be no need to report any employer expenditure up to a cap of £500 per employee per year on a health-related intervention recommended by the new Health and Work Assessment and Advisory Service. Any amount over the cap will, as now, be either a benefit in kind or payment of earnings and subject to income tax and NICs as appropriate.
CIPP Policy News Journal
16/04/2014, Page 142 of 519
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