Covid-19 Antigen Tests: Tax and National Insurance

Thursday 9th July 2020 Written Statements

[The Financial Secretary to the Treasury (Jesse Norman)]

The Government are introducing an income tax exemption and national insurance (NICs) disregard to ensure that coronavirus antigen testing provided to employees outside the Government’s national testing scheme will not attract tax and NICs liabilities.

The Government recognise the importance of covid-19 testing. Currently, regular tests are available through the Government testing programme to a wide range of employees, including NHS workers. If an individual is tested through the Government testing programme, no tax liability will arise.

Under normal rules, the provision of a test by an employer to an employee, either directly or by purchasing tests that are carried out by a third party, would constitute a benefit in kind, and the cost of providing the test would be subject to income tax and class 1A NICs as a result. However, the Government will introduce an exemption to ensure that no tax liabilities arise.

This exemption will ensure that income tax and NICs will not be due on employer-provided antigen tests carried out during the current tax year 2020-21.

[HCWS352]