Tax incentives for occupational health

The ATT has responded to the recent joint HM Treasury - HMRC consultation on tax incentives for occupational health published on 20 July 2023.

In summary :

• We agree that the current benefit in kind exemptions should be extended to cover a wider range of occupational health costs.
• In particular, we welcome the proposed exemption for employer reimbursed flu vaccination costs.
• The current system – in which employer provided vaccines or vouchers are exempt but reimbursing an employee leads to a tax charge – is counter intuitive. Removing this discrepancy could drive greater uptake of vaccines, with benefits to employees, employers and the wider economy.
• Consideration should also be given to extending the current exemption for employer provided eye tests, glasses and contact lenses to include reimbursement.

More details on the above can be found in our full response.