Question:
I want to pay for my employees to be screened regularly for COVID-19. Is this a taxable benefit or is it exempt?
Answer:
When the initial guidance for employers was published back in July 2020, HMRC stated that an employer paying for an employee to be tested would constitute a taxable benefit in kind. This received a lot of criticism and resulted in a U-turn. It has now been announced that from 8 December 2020 to 5 April 2021, employer-funded tests for COVID-19 (but not the test for antibodies, i.e. to check whether the individual has previously had it) will be exempt. HMRC will also not seek to recover tax or national insurance where employers have paid for tests prior to 8 December.
