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Budget 2014: Employees to receive funded occupational health treatments

Mark Groom, tax partner at Deloitte, said “Employers and employees will welcome the support provided by this new relief. However, it is odd that the relief cannot be claimed by employees if they pay for the medical treatment themselves.  Neither will it be available if employers pay for the treatment in connection with a salary sacrifice scheme.”

The new exemption is intended to help employees who have been off work, get back to work more quickly.  The relief will be limited to &pound500 of treatment paid by employers and is expected to take effect from October 2014.

Groom added, “It is odd that the government has outlawed salary sacrifice in relation to this new relief.  Given that it will only be relevant where employees have been off work due to illness, this is not the sort of benefit that is capable of wide exploitation.  There would appear to be no mischief in employers and employees wishing to fund treatment jointly.  It would also appear sensible for the new relief to be extended to insuring against medical treatment required to help employees get back to work more quickly, although this appears to have been either overlooked or discounted.”


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