Asked by: Baroness Royall of Blaisdon (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether providing access to applications that support employees' mental health is (1) a taxable payment or (2) a benefit for employees; and, if not, whether they will update the published guidance to reflect this.
Answered by Lord Agnew of Oulton
The provision of access to applications that support employees’ mental health can be a taxable benefit in kind in some circumstances. There are statutory tax exemptions for employee support provided as part of recommended medical treatment, or as welfare counselling. If these do not apply, and the cost of providing access does not exceed £50, this may be covered by the exemption for trivial benefits, provided the conditions are met.
Her Majesty’s Revenue and Customs have published guidance on the tax treatment of recommended medical treatment, welfare counselling and trivial benefits.
Asked by: Baroness Royall of Blaisdon (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether providing sanitary products for employees is (1) a taxable payment, or (2) a benefit for employees; and, if not, whether they will update the published guidance to reflect this.
Answered by Lord Agnew of Oulton
The provision of sanitary products for employees is normally a taxable benefit in kind. Depending on the particular circumstances, the rules on trivial benefits may apply, in which case there would be no tax liability.
Her Majesty’s Revenue and Customs have published guidance on the tax treatment of trivial benefits.
Asked by: Baroness Royall of Blaisdon (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of employees (1) taking, and (2) being required to take, annual leave whilst on furlough.
Answered by Lord Agnew of Oulton
The Coronavirus Job Retention Scheme is a vital element of the Government’s efforts to protect the economy during COVID-19. Employees continue to accrue holiday while on furlough, as per their employment contract, unless the employer and employee agree to vary this as part of the furlough agreement. It remains the case in employment law that an employer may ask employees to take holiday in the period of furlough. This would be a negotiation between employer and employee, and Working Time Regulations require holiday pay to be paid at an employee’s normal rate of pay. In order to provide extra flexibility, where it is not reasonably practical for an employee to take some, or all, of the holiday to which they are entitled due to Covid-19, holiday can now be carried over into the next two leave years.
During this unprecedented time, the Government is keeping the policy on holiday pay under review.