Employers are not obligated to pay tax and National Insurance on specific health benefits that fall under tax concessions or exemptions. For instance, there is no need to report medical or dental treatment or insurance if they are part of a salary sacrifice agreement.
Furthermore, the following health benefits can be provided without incurring taxes:
1. One health-screening assessment and one medical check-up per year.
2. Eye tests mandated by health and safety regulations for employees who use computer monitors or similar screens.
3. Glasses or contact lenses necessary for employees working with computer monitors or similar screens.
4. Medical treatment for employees working abroad, provided the employer has made prior commitments to cover the treatment expenses or directly pays the medical provider on behalf of the employee.
5. Medical treatment or insurance associated with work-related injuries or diseases.
6. Medical treatment aimed at facilitating an employee's return to work. This allows the employer to cover costs up to £500 for the employee's return.
If any medical or dental treatment or insurance provided does not qualify for exemption, it must be reported to HMRC. Employers might be required to deduct and pay taxes and National Insurance on these amounts.
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