Monday, 10 May 2021

'Testing tax' dropped after backlash against charging workers in their salaries

The Treasury has rowed back on plans to tax workers who are given coronavirus tests by their employers. 

Yesterday the Chancellor Rishi Sunak was told to investigate whether the tests should count as a ‘taxable benefit in kind’, after HMRC said had labelled them on its website. 

Mr Sunak hinted yesterday that the plans could be reversed, saying that he would ‘look into’ the issue ‘very quickly’. 

Now the Treasury has said it will make the tests exempt from taxing.  A spokesperson told ‘Given the importance of widespread testing, we want to ensure that all employers who wish to provide third party testing to their employees can do so without increasing their tax liability. So we will introduce a new income tax exemption for Covid-19 antigen tests provided by employers.

‘HMRC will amend their guidance as soon as possible to reflect this change.’

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Tests for whether people with symptoms currently have the disease are free.

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