Q: My client’s company has provided a medical check-up for one of their employees due to an injury at work on site, resulting in them having 4 weeks off. Following this check-up the client has been recommended to have physiotherapy. Would the cost of the check-up and physiotherapy result in a benefit in kind?
A: Generally, providing a single medical check-up or health screening for an employee does not result in a taxable benefit. If more than one is provided in a tax year, a benefit will arise. Definitions of "health-screening assessment" and "medical check-up" are available under s.320B(3) ITEPA03 and HMRC’s guidance:
- A “health-screening assessment” identifies employees at risk of ill-health.
- A “medical check-up” is a physical exam solely to determine health status.
Physiotherapy recommended to help an employee return to work can be exempt from income tax if all these conditions are met:
- The employee was declared unfit for work or absent due to illness or injury for at least 28 days,
- The recommendation was made by a healthcare professional as part of occupational health services,
- It assists the employee’s return to work,The recommendation is written, given to both employer and employee, and specifies the treatment.
All conditions must be strictly satisfied. If so, only costs over £500 are taxable; up to £500 is tax free. Medical check-ups are generally exempt, but further details are needed to confirm exemption for treatment. The benefits above do not apply to salary sacrifice schemes.
Q: We are a small UK VAT registered business and have just received a letter from HMRC requesting that we send details to them relating to our core business information. This includes confirmation of our trading address, bank account, business activities ,profit & loss accounts for the last 3 years and core sales/purchase data for the same time period. All of this information is to be sent to a linked website stated in the letter. We have accessed the link and it does not relate to an HMRC address. Should we send any information to HMRC using this link?
A: No. Before ever exchanging information with HMRC it is essential that the request for this information is checked. The most straight forward way of doing this would be to telephone HMRC's National Advice Line on 0300 200 3700. There are a number of ways to report suspicious HMRC contacts as per the following link:
These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.
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