Medical Check-ups and treatment, tax free?

Medical check-ups and treatment can become exempt from tax and NI in certain circumstances. It is essential to know and follow the regulations of when this may be possible.

Tax Payment Options When is the cost of a medical-checkup tax and ni exempt?

An employer can, at any time, provide employees with a health screening assessment or a medical check-up without triggering a tax or NI bill. This is limited to a maximum of one health screening and one medical check-up each tax year.

Tax Payment Options Is there an exemption for providing medical treatment?

There is exemption from tax and NI where you pay for medical treatment for an employee while they are working abroad. For the tax and NI exemption to apply the employer must have agreed to meet the cost before the employee required treatment unless it is arranged and paid to the treatment provider (or medical insurer) directly. Meeting the cost of medical treatment resulting from an injury or illness caused directly from the employee doing their job is also exempt from tax and NI.

employees who have been off work long term because of illness

An employer can pay up to £500 tax and NI free towards the cost of helping an employee to return to work after long-term illness. If you pay more than £500, the excess counts as taxable pay for the employee.

The employee must have either:

1) been assessed by a health care professional as unfit for work because of injury or ill health for at least 28 consecutive days

2) been absent from work because of injury or ill health for at least 28 consecutive days. For the purposes of the exemption medical treatment means all procedures for diagnosing, or treating any physical or mental illness, infirmity or defect.

A further condition of the exemption is that the treatment must have been recommended by either:

  • the “Fit for Work” scheme (see or, alternatively,
  • an employer-arranged occupational health service.

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