
Tax Implications Of COVID Related Employee Benefits
HMRC has provided detailed guidance on tax implications of COVID-related employee benefits. The major of these are coronavirus tests and the provision of Personal Protective Equipment (PPE) to employees.
The guidance explains how employers should proceed where they are providing coronavirus testing kits or Personal Protective Equipment (PPE) to their employees.
Coronavirus testing kits
HMRC confirms that coronavirus tests provided by the government to healthcare workers and other eligible front-line as part of its national testing scheme are not treated as a benefit in kind for tax purposes. There is no tax due and you do not need to report a benefit to HMRC.
Further, where an employer separately provides antigen testing kits to their employees or provides tests completed by a third party then no Income Tax or Class 1A National Insurance contributions will be due.
Personal Protective Equipment
Where employees are working in scenarios where the likelihood of the transmission of coronavirus is very high and a risk assessment determines that PPE is required, then the necessary equipment must be provided to employees free of charge. The PPE must fit correctly. The provision of this PPE to employees is non-taxable.
If an employee requires PPE to complete their job and the employer is unable to provide this, then employers must reimburse the actual expenses of employees purchasing PPE themselves. This is non-taxable and employees cannot claim tax relief on these expenses from HMRC.
If you are looking to know more; feel free to book a no obligation contact with us.
We are increasingly asked whether the EIS and VCT new limits give growing companies more scope to raise tax-advantaged investments....
We are increasingly asked the same question by production companies and arts organisations: why does a claim that looked routine...
We’re increasingly asked by SME clients whether it’s worth applying for advance assurance before submitting an R&D tax relief claim....
A business can fall behind with a relatively modest VAT or PAYE liability after one difficult trading quarter. Because the...
A client came to APEX last year partway through refurbishing a mixed-use building — offices upstairs, a partly exempt letting...
More UK family firms than ever are employing family members, putting spouses, partners, and children on the payroll as they...
A client came to Apex Accountants earlier this year after inheriting her late father’s house and modest savings. She was...
A recent Upper Tribunal ruling has increased demand for UK VAT group advice by casting doubt over the terms on...
Scottish tax advice for high earners has become more important as Scottish taxpayers earning above £100,000 face one of the...
UK-based sellers trading on Amazon, eBay, Etsy and similar platforms could soon find themselves subject to a very different VAT...