Clarity needed on taxation of COVID test costs, says ICAEW

Guidance published by HMRC states that employers and employees will not be liable for any income tax or national insurance contributions (NICs) on the costs of the test.

The Institute of Chartered Accountants in England and Wales (ICAEW) has urged HMRC to confirm whether coronavirus (COVID-19) antigen tests paid for by employers will continue to be exempt from income tax and national insurance after 5 April 2021.

Guidance published by HMRC states that employers and employees will not be liable for any income tax or national insurance contributions (NICs) on the costs of the test. However, no end date is given for this exemption.

Regulations outlined by HMRC in December confirmed that tests provided by employers would be exempt from 8 December 2020 until 5 April 2021. Additionally, a government announcement confirmed that legislation would be introduced to give a temporary NIC and income tax exemption from 25 January 2021 until 5 April 2021.

The ICAEW has asked HMRC whether new legislation will be created to extend the exemption or whether HMRC intends to use its collection and management powers. The Institute also called for HMRC to provide clarity on the difference between antigen tests and antibody tests, which are not exempt.

Xero - Silver Partner ACCA logo IPSE Logo Sage Accountant Partner
About our team

As well as general accountancy and tax skills, our two directors also have individual specialist skills which enable us to provide clients with a first class service as and when required.

Learn more

Latest news
Contact Details

Please call:
01953 600683

Grant Matthewson, Wymondham Business Centre, 1 Town Green, Wymondham, Norfolk NR18 0PN

Home | Contact us | Site map | Accessibility | Disclaimer | Help |

© 2021 Grant Matthewson. All rights reserved. powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.

Statutory Information: Grant Matthewson Limited are registered in England & Wales. Registration number: 4575000. Registered office address: as above.