In a letter to Rishi Sunak earlier this week, Tory MP and Chair of the Treasury Committee Mel Stride, requested an explanation on Covid -19 tests carried out and paid for by employers being taxed as a benefit of employment.
Just as hospitality businesses are reopening this tax on testing is another straw on camel’s backs already heavily laden.
Current guidance from HMRC is that employees will incur a taxable benefit in kind when their employer pays for Covid-19 testing.
Mr Stride’s letter pointed out the necessity of testing, not only for the benefit of employees but also all they come into contact with.
In what would seem like an oversight the Chancellor responded to the issue being raised in the House of Commons saying he will look into the case and do so very quickly.
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tax Covid-19 tests – 8 July 2020 – tax Covid-19 tests