Tax free medical treatment
The Government is introducing tax and NIC relief for costs where an employer funds treatment to help an employee return to work after a period of sickness.
The Government now wishes to consult on draft regulations for the relief. The key issues are that:
- the recommendation for medical treatment (given by a health care professional) must be given after an employee has been assessed as unfit for work, or as expected to be unfit for work, for at least 28 consecutive days.
- the assessment that an employee is unfit for work will also include an assessment that they ‘may be fit’ for work subject to appropriate arrangements.
- the recommendation for medical treatment must be provided in writing and must, as a minimum, confirm the medical treatment that is recommended.
The proposal on record-keeping requirements is that employers should keep the relevant records for at least 3 years. Such records could be: attendance records; Fit Notes; Return to Work Plans or equivalent documents to provide evidence that all relevant criteria have been met and the tax exemption applies.
Date: 2nd October, 2014
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