Medical and dental treatment and insurance

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Introduction

The provision of medical related benefits to employees is one of the most common benefits provided by employers. If an employer provides insurance or pays for medical treatment for an employee, an income tax and NIC liability usually arises.

This guidance note sets out main points to consider in relation to employer health-related matters. In addition, the Client factsheet ― tax treatment of employer payments toward employee health issues provides a brief summary of some of the main points to consider, and may be adapted as an aide memoire, for use by clients who are responsible for organising or reporting relevant payments.

Medical insurance

An employer may take out a medical insurance policy to cover their employees, if so, such insurance cover is a taxable benefit. Insurance taken out to cover members of an employee’s family is similarly a benefit taxable on the employee.

Any claim made under such a policy for treatment is not a taxable benefit in itself as the taxable benefit arising to the employee is the insurance premium as

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more

Corporation Tax

Group relief for carried-forward losses

Group relief for carried-forward lossesThis guidance note examines in detail the relief available to groups for carried-forward losses. The scope excludes the treatment of specialist businesses such as banks, insurance companies and oil and gas companies.From 1 April 2017, companies can surrender

14 Jul 2020 11:50 | Produced by Tolley Read more

Employment Tax

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, “...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...”. Reasons for keeping the records include:•being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more

��Ƶ