Tax break for workplace health interventions

Employers will receive tax relief on expenditure up to £500 covering support, such as specialist equipment or treatment, recommended by a new health and work assessment and advisory service. This targeted tax relief will encourage employers to fund around 110,000 health-related interventions. Without this tax relief the payments would be liable to income tax and employer National Insurance contributions. The new health and work assessment and advisory service will provide occupational health expertise to many small businesses for the first time.

The Minister for Welfare Reform Lord Freud said: “The introduction of tax relief for interventions and the health assessment and advisory service will help British business to hold on to their staff, help workers stay in work and cut the sickness benefit bill by up to £60million per year.”

The Government will consult on the details of the tax relief later this year. The new service was announced in the Government response to the independent review of sickness absence and will provide occupational health advice to employees, employers and GPs on the support and interventions needed to help employees move from sickness absence back into the workplace.