Tax

ATT urges tax exemptions for employer-funded Covid testing

Without these tax exemptions The Association of Taxation Technicians revealed that an employer paying for an employee’s test would be providing a benefit equal to the cost of the test.

The Association of Taxation Technicians (ATT) has called for tax exemptions for employer-funded Covid-19 antigen tests to extend beyond 5 April 2021.

Without these tax exemptions the ATT revealed that an employer paying for an employee’s test would be providing a benefit equal to the cost of the test.

This can lead to income tax and/or national insurance costs for both the employee and employer – as well as unwelcome administration tasks for the employer.

Jeremy Coker, president of the ATT expressed that the government must extend the income tax and national insurance exemptions for employer-funded testing until at least 5 April 2022 given the ongoing pandemic.

He said: “There would be a real public benefit in encouraging employers to support such testing. Key workers in particular should not be hit by tax charges if their employer pays for them to be tested.

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“In our Budget representation,4 we suggest the Government could go even further, and that there would be a public benefit in introducing a wider-ranging and enduring exception from taxable benefits for employers who fund employee-testing for any highly transmissible disease.”

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