Following the
government’s rethink on the tax treatment of Covid-19 tests provided by
employers to employees, HMRC has updated its guidance How to treat certain expenses and
benefits provided to employees during coronavirus (Covid-19) to confirm that coronavirus test
kits provided by employers will not be a taxable benefit for the tax
year 2020/21. This clears up earlier confusion where the guidance appeared to
indicate the opposite position. The guidance also notes that the government ‘is
legislating for this through regulations’ (which presumably means regulations
are expected soon).
Following the
government’s rethink on the tax treatment of Covid-19 tests provided by
employers to employees, HMRC has updated its guidance How to treat certain expenses and
benefits provided to employees during coronavirus (Covid-19) to confirm that coronavirus test
kits provided by employers will not be a taxable benefit for the tax
year 2020/21. This clears up earlier confusion where the guidance appeared to
indicate the opposite position. The guidance also notes that the government ‘is
legislating for this through regulations’ (which presumably means regulations
are expected soon).
