HM Revenue and Customs (HMRC) have at long last agreed that medical checks provided by employers for employees can be exempt from Income Tax and National Insurance Contributions if screening is made available on similar terms to all employees. The Finance Bill 2009 will contain the necessary legislation. At present, HMRC are operating a concession with regard to this expenditure for tax years 2007/2008 and 2008/2009, which means that these expenses will not give rise to a chargeable benefit in kind.
The problem arose because such expenditure became taxable after the introduction in 2007 of new tax laws relating to benefits in kind. Following a howl of protest by employers and the professions, HMRC have relented.
ICAEW Tax Faculty Newswire 437, 14 January 2009.