Sarah Bradford examines the tax treatment of medical benefits and medical insurance.
It is in the interests of both the employee and the employer that the employee is fit and able to work. To ensure that employees remain healthy and available for work, employers may provide one or more medical-related benefits, such as private medical insurance or health screening, or may meet the cost of medical treatment.
The tax system also recognises the benefit of a healthy workforce, and there are a number of health-related tax exemptions which aim to help reduce the number of working days lost to ill-health. However, there is no blanket exemption for medical benefits; it is, therefore, important to understand what is taxable and what is not.
Private medical insurance
Private medical insurance is one of the most popular benefits-in-kind. It is
