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HMRC are concerned that the regulations which make employer-provided health screening and medical check ups exempt for income tax are not working in the desired way.

In July 2007, regulations were laid to exempt employer-provided health screening and medical check ups from tax. The regulations came into effect from 14 August 2007 and replaced the non-statutory treatment previously set out in HMRC guidance.

For the regulations to apply the health screening and/or medical check ups have to be available to all the employer’s employees generally on similar terms. However, following a number of representations, HMRC are concerned that some existing health screening schemes could be affected in a way that was not envisaged at the time the regulations were made.

HMRC now wish to discuss the issues arising from the regulations with employers and their representatives in order to find a way forward that meets the needs of both HMRC and employers on this matter.

In the meantime, for 2007/08, HMRC have confirmed that they will not seek to collect tax and NICs in respect of health screening and/or medical check ups where it would not have been payable on the basis of the previous non-statutory treatment.

HMRC will be writing to interested parties who contacted them when the regulations were first introduced and seek views from representative bodies as part of their normal round of consultative meetings. Comments for any other interested parties are invited by 4 January 2008.

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HMRC: Employer provided medical check ups