Earlier this year the government opened consultations on providing a new tax exemption for employer costs incurred in helping staff return to work. This is intended to tie in with the new ‘health and work assessment and advisory service’ due to be created next year, whose main ‘intervention’ focus will be to ensure that employees off sick are able to return to work as soon as possible.

The initial suggestions, that the tax relief should have a £500 maximum and should only apply if the employer agrees to fund all such ‘interventions’, has attracted some criticism. However it is worth remembering that a significant proportion of staff medical or welfare costs may already be met by employers, without incurring tax or NIC charges. This article provides a brief summary. Please contact the ET4B team if you require additional information.