Health screening and medical check-ups

Santa wants healthy helpers, but is concerned there will be a tax and NI liability if they are offered a medical check-up in the run up to Christmas.

There is good news for Santa, there will be no tax or NI liability providing that in any tax year they receive no more than:

One health-screening in any tax year; or
One medical check up.

HMRC have set out their view of what is meant by a health-screening assessment and a medical check-up in their Employment Income Manual. In broad terms, their view is as follows:

Health-screening assessment

To identify employees who may be at a particular risk of ill-health (for example, by completing a questionnaire).

Medical check-up

Physical examination by a health professional to determine the employee’s state of health.

However, care should be taken when applying the exemption.

Medical checks that are connected to the provision of medical treatment are not covered by the exemption; and
If salary sacrifice is used, HMRC’s Optional Remuneration Arrangements (OpRA) legislation will apply and the exemption will not be due.

If you need any help with the exemption, please contact our helpful UNW elves at employmenttaxesteam@unw.co.uk.