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Forum Home  →  Discussion  →  Covid-19 issues  →  Thread

Workers facing income tax bill for coronavirus tests paid for by employer

Ros
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editor, rightsnet.org.uk

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The Treasury Committee says that HMRC guidance published on 6 July 2020 clarified that a coronavirus test paid for by an employer will be considered a taxable benefit, with the result that that employees will pay income tax when their employer pays for a test.

Chiar of the Treasury Committee Mel Stride comments that -

Many employees, especially healthcare and hospitality workers, are required to undergo regular coronavirus testing. This new guidance is unclear and will worry a large number of workers.

If these tests are to be treated as a taxable benefit in kind, the tax bill for workers could soon mount up.

Many of our key workers could be faced with the perverse incentive of avoiding employer-sponsored tests in order to reduce their tax bill.

This cannot be right. I’ve asked the Chancellor to look into this as soon as possible.’

Workers forced to pay income tax on coronavirus testing

Ianb
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Macmillan benefits team, Citizens Advice Bristol

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Ros
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Yep - here’s new Treasury Committee page with letter from Rishi Sunak confirming the introduction of a new exemption from income tax for employer-provided COVID19 antigen tests.