Medical and dental care for employees

There is no requirement for employers to pay tax and National Insurance on certain health benefits covered by tax concessions or exemptions.

For example, there is no requirement to report employees’ medical or dental treatment or insurance if they are a part of a salary sacrifice arrangement. 

In addition, the following health benefits can be provided tax free:

• A maximum of one health-screening assessment and one medical check-up in any year
• Eye tests required by health and safety legislation for employees who use a computer monitor or other type of screen
• Glasses or contact lenses required by employees for working on computer monitors or other types of screen
• Medical treatment for employees working overseas. The employer must have committed in advance to pay for this treatment or must pay the provider directly for the employee’s treatment or insurance
• Medical treatment or insurance related to injuries or diseases that result from your employee’s work
• Medical treatment to help an employee return to work. This allows the employer to pay up to £500 in costs for an employee to return to work.

Any medical or dental treatment or insurance that does not fall under an exemption must be reported to HMRC. In such cases, employers may need to deduct and pay tax and National Insurance on the value of the benefit, typically via a P11D or payrolling benefits system.

Our friendly Business and Tax Advisory experts are here to support you every step of the step of the way. Give them a call on 01380 723692 or email us here.