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.'

About

Whether advising individuals, owner-managed businesses, listed companies, or international entities, we work closely with our clients, as partners, with the same aim: to help them achieve their goals.

ICAEW BAS membership logo

Get in Touch

SRLV LLP
4th Floor Elsley Court
20-22 Great Titchfield Street
London
W1W 8BE

Phone: +44 (0)20 7079 8888
Fax: +44 (0)20 7079 8889
Email: hello@srlv.co.uk

A founder member of Premier International

Founder & Member of Premier International Associates

SRLV LLP and SRLV Audit Limited are each registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England & Wales.  Legal

SRLV Audit Limited is registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England & Wales.   Legal