Employer provided or reimbursed coronavirus tests will not be taxable for a further year

18 March 2022

The Finance Act 2021 (Modification of Section 26) (Coronavirus) Regulations 2022 extends the easement on income tax arising from coronavirus testing. This applies to both employer provided and employer reimbursed tests.

Under general rules, employer provided tests would be taxable as a Benefit in Kind (BiK) and attract tax and National Insurance Contributions (NIC). The provision for NICs has been regulated in a separate provision.

The test the legislation refers to mustn't be an antibody test and should be carried out to detect viral antigens/viral ribo-nucleic acid (RNA). The law initially applied in the United Kingdom during the 2020/21 tax year but was extended for 2021/22.

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