Health Screening and Medical Check-ups - Review of exemption from tax liabilities

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25 October 2007

In July 2007, Regulations were laid to exempt employer-provided health screening and medical check-ups from tax. The regulations came into effect from 14 August 2007 and replaced the non-statutory treatment previously set out in HMRC guidance.

For the Regulations to apply, the health screening and/or medical check-ups have to be available to all of the employer's employees generally on similar terms. However, following a number of representations, HMRC is concerned that some existing health screening schemes could be affected in a way that was not envisaged at the time the Regulations were made.

HMRC wishes to discuss the issues arising from the Regulations with employers and their representatives in order to find a way forward that meets the needs of both HMRC and employers. In the meantime, for 2007/08, HMRC will not seek to collect tax and NICs in respect of health screening and/or medical check-ups where they would not have been payable on the basis of the previous non-statutory treatment. HMRC is contacting interested parties and representative bodies and comments can be sent by email to www.hmrc.gov.uk/asplib/mailer/mailer_form.asp?dpt=PA_HARRIS by 4 January 2008.

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Further information:
Income Tax (Exemption of Minor Benefits) (Amendment) Regulations 2007
The Social Security (Contributions) (Amendment No. 6) Regulations 2007
Employer provided medical check ups

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