HMRC scraps benefit-in-kind charge on coronavirus tests

The government has scrapped plans to get workers to pay income tax on coronavirus (COVID-19) testing kits purchased by their employer.

HMRC issued guidance on 6 July which outlined that COVID-19 testing kits were to be classified as a taxable benefit-in-kind.

However, the Treasury Select Committee criticised this decision and highlighted that tax bills could build up as employers purchase large numbers of tests.

Mel Stride, Chair of the Treasury Select Committee, said: 'Many employees, especially healthcare and hospitality workers, are required to undergo regular coronavirus testing.

'Many of our key workers could be faced with the perverse incentive of avoiding employer-sponsored tests in order to reduce their tax bill. This cannot be right.'

A spokesperson for the Treasury said: 'Given the importance of widespread testing, we want to ensure that all employers who wish to provide third-party testing to their employees can do so without increasing their tax liability.

'So we will introduce a new income tax exemption for COVID-19 antigen tests provided by employers. HMRC will amend its guidance as soon as possible to reflect this change.'

Latest News

Robert S Boys Chartered Accountants
28-30 Grange Road West
Birkenhead
Wirral
Merseyside
CH41 4DA


Home | Contact us | Site map | Accessibility | Disclaimer | Privacy Notice | Help |

© 2020 Robert S Boys Chartered Accountants. All rights reserved. powered by totalSOLUTION

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

Robert S Boys is the trading name of Robert S Boys Ltd. Robert S Boys is registered in England & Wales. Registered office address: 28-30 Grange Road West, Birkenhead, Wirral, Merseyside CH41 4DA. Registered in England No: 07478154.

In accordance with the disclosure requirements of the Services Regulations 2009, our professional indemnity insurer is Partner Re Ireland Insurance Limited (Underwritten by on behalf of Nexus Underwriting Ltd) 150 Leadenhall Street, London, EC3V 4QT. The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada. We are registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales and details about our audit registration can be viewed at www.auditregister.org.uk, under reference C006982141.