27 April 2026
The Government has introduced new and improved tax and National Insurance Contributions (NICs) exemptions from 6 April 2026.
This allows employers to reimburse employees for the cost of:
- Eye tests required for Display Screen Equipment (DSE) users and, where required, glasses for Visual Display Unit (VDU) use.
- Seasonal flu vaccinations.
- Certain items used in employment duties, including equipment employees need to work effectively from home.
Previously, eye tests and home-working equipment were only exempt from tax when provided directly by employers; if reimbursed to the employee, they were taxable. Additionally, employers were required to use voucher schemes to reimburse the cost of flu vaccinations. This seemingly discouraged implementation of such arrangements due to the extra administration, particularly for small businesses, employers with hybrid workers, and organisations with employees working from home.
Going forward, the same tax treatment will apply whether the employer arranges and pays the provider directly, issues a voucher, or reimburses the employee. Moreover, where the relevant legislative conditions are met, employers will not be required to submit claims, seek prior approval or make changes to payroll or reporting processes. The exemption will apply automatically.
Considerable progress appears to have been made in aligning with modern working practices through the expansion of workplace benefits relief and the simplification of rules.
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