The Government is aiming to encourage employers to invest in occupational health support for their employees, with the ultimate goal of reducing health-related workplace absences and maximising economic growth.
The focus of this consultation is primarily on expanding the current income tax and National Insurance Contributions (NICs) exemptions, which provide tax deductions for employers on certain medical benefits in kind including employer-funded recommended medical treatment to aid employees' return to work, annual health screenings, medical check-ups, welfare counselling, and eye tests (including the provision of glasses or contact lenses). Through the consultation, the government is seeking feedback on a proposal to extending the exemption to cover additional health screenings, check-ups, preventative treatments to minimise workplace absences or enhance performance, and employer-paid or refunded flu vaccinations.
The Government wants to gather insights from employers on the current levels of workplace OH services offered to employees, the role of tax considerations in this decision-making process, and the potential impact of the proposed tax incentives on increasing OH provision across various industries and sectors. The Government is particularly interested in exploring the challenges faced by smaller companies.
The consultation is open until 12 October 2023.