Workers forced to pay extra tax for coronavirus tests
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Workers will be forced to pay income tax on coronavirus tests if their employers order them, it has been revealed.
Newly released documents from the Treasury show that employees will face a “taxable benefit in kind” when their employers order the tests, meaning they are treated as extra workplace benefits.
As workplaces will have to continually order available tests, particularly frontline services, this means that extra income tax could accrue at a fast pace for employees.
Many will argue that it is unfair for Covid-19 tests to be considered workplace benefits as they become mandatory for workplaces to reopen as the lockdown eases.
Mel Stride, chair of Westminster’s Treasury Select Committee, asked chancellor Rishi Sunak to review the issue in parliament today.
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Sunak told MPs that he would look into the matter straight away and report back.
In a statement, Stride said: “Many employees, especially healthcare and hospitality workers, are required to undergo regular coronavirus testing. This new guidance is unclear and will worry a large number of workers.
“If these tests are to be treated as a taxable benefit in kind, the tax bill for workers could soon mount up.
“Many of our key workers could be faced with the perverse incentive of avoiding employer-sponsored tests in order to reduce their tax bill.”
The official guidance from the Treasury on Covid-19 testing says: “Coronavirus (COVID-19) testing kits or tests carried out by a third party which have been purchased by you to provide to your employees, are treated as a taxable benefit in kind on the employee.”