Employer provided medical check ups

10 December 2008

HM Revenue & Customs (HMRC) would once again like to thank everyone who commented on the medical check regulations, SI 2007 No. 2090. We are now able to announce that the government will include legislation in the forthcoming Finance Bill to exempt from tax the provision of yearly health screening and medical check ups by employers to their employees without the proviso that they have to be available generally on similar terms to all employees with effect from 6 April 2009. This will mean that the tax and National Insurance contributions (NICs) treatment of employer provided medical checks will be broadly the same as it was before the regulations were introduced in August 2007. In the meantime the current concessionary practice not to collect tax and NICs that may arise from the existing regulations will continue. If anyone has any questions about this announcement they should email Paul Harris.

July 2007 Regulations

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 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 want 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 on this matter.

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 it would not have been payable on the basis of the previous non statutory treatment.

We will write to interested parties who contacted us when the regulations were first introduced and seek views from representative bodies as part of our normal round of consultative meetings. Comments can be sent by e-mail if possible to Paul Harris by 4 January 2008.