HMRC guidance published on 6 July to clarify that employees will face a taxable benefit in kind when their employer pays for coronavirus testing. This would have meant that employees will pay income tax and National Insurance Contributions (NICs) when their employer pays for coronavirus testing.

Rt Hon. Mel Stride MP, Chair of the Treasury Committee, wrote to Rt Hon. Rishi Sunak MP, Chancellor of the Exchequer, to look into this matter as soon as possible. Mr Stride also raised the issue with the Chancellor at Treasury Questions yesterday here.

The Chancellor responded to Mr Stride last night to say that the Government has reversed this decision and will now introduce “a new income tax and NICs [National Insurance Contributions] exemption from income tax for employer-provided COVID19 antigen tests.”

Chair’s comments

Commenting on the correspondence, Mr Stride said:

“It would not have been right to increase the tax bill for workers every time that they had a coronavirus test. I’m glad that common sense has prevailed. And I’m grateful that the Chancellor has listened to the Treasury Committee and reversed this decision so swiftly.”


Original article ‘Treasury committee welcomes Government U-turn to exempt corona testing from Income Tax and NICs’ Written Published by


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