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Employer provided medical check ups

Friday, 12 October 2007

HM Revenue & Customs is looking into claims that tax exemptions for employers who provide health screening and medical check ups has affected existing schemes in ways it did not envisage.

In July 2007, regulations were laid to exempt employer provided health screening and medical check ups from tax. The regulations came into effect from 14 August 2007 and replaced the non statutory treatment previously set out in HMRC guidance.

For the regulations to apply the health screening and/or medical check ups have to be available to all the employer’s employees generally on similar terms. However, following a number of representations, HMRC said it is concerned that some existing health screening schemes could be affected in a way that was not envisaged at the time the regulations were made.

HMRC has said it wants to discuss the issues arising from the regulations with employers and their representatives in order to find a way forward that meets the needs of both HMRC and employers on this matter.

In the meantime, for 2007/08, HMRC said it will not seek to collect tax and NICs in respect of health screening and /or medical check ups where it would not have been payable on the basis of the previous non statutory treatment.

HMRC will write to interested parties who contacted them when the regulations were first introduced and seek views from representative bodies as part of its normal round of consultative meetings. Comments can be sent by e-mail if possible to Paul Harris by 4 January 2008.

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