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Employers providing medical/dental treatment or insurance to employees are subject to certain taxes, National Insurance contributions and reporting responsibilities.
💡 Some things can be provided that don’t need to be reported:
- Eye tests, if required by health and safety legislation, for employees who use a computer monitor or other screen.
- Glasses or contact lenses where they are provided for a monitor or screen at work.
- Any treatment or health insurance required for employees working for you overseas and needing treatment.
- Periodic medical checks or health screening - one per year.
- Medical treatment or insurance for work only.
- Medical treatment to help an employee return to work - up to £500.
If the treatment or insurance contract is between the employer and the provider, it's reported in this section. You should enter the value of the employee's premium or, if they are in a group policy, their share of the total premiums paid. Deduct any amount made good or from which tax was deducted, showing the resultant cash equivalent.
If your employee arranges the treatment or insurance, follow these steps:
- Report it on a P11D form.
When deducting and paying Class 1 National Insurance (but not PAYE tax) through payroll, add the value of the benefit to the employee's earnings.
For more information on Section I, please visit this website.
Please note – This guideline is not exhaustive, and it does not cover every eventuality. Its main focus is on the most typical scenarios that usually happen in reality. It's important to be aware of other possibilities as well. If you need more detailed information, please refer to the HMRC website. Always consult a tax advisor if you have any doubts or queries.