The tax break of £500 that was to have been given to employers using the new Health and Work Service will be extended to those recommended by employer-arranged occupational health services, the Government has confirmed in today’s Autumn Statement papers.
The tax break had initially only been intended for treatments “recommended by the Independent Assessment Service (IAS)” which has subsequently been rebranded the Health and Work Service.
More details will be published at the time of the laying of the Finance Bill 2014.
Jelf Employee Benefits head of benefits strategy Steve Herbert says: “This is potentially huge news for the health related side of the employee benefits world, and may help shape offerings for some years to come.”
The Autumn Statement reference to the HWS tax exemption in full:-
2.49 Tax exemption for employer-funded occupational health treatments – As announced at Budget 2013 the government will introduce a tax exemption for amounts up to £500 paid by employers for medical treatment for employees. In response to consultation the government will extend the exemption to medical treatments recommended by employer‑arranged occupational health services in addition to those recommended by the new Health and Work Service (Finance Bill 2014).