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

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

SEIS and EIS ― overview

SEIS and EIS ― overviewThe seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) are very similar schemes which offer substantial tax incentives to investors in companies which qualify. The tax incentives for SEIS and EIS investments are intended to encourage investment in

14 Jul 2020 13:31 | Produced by Tolley Read more

Corporation Tax

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more

Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more

UU��ֱ��