LEAFLET ON TAX RULES FOR PURCHASING OCCUPATIONAL HEALTH SUPPORT

HSE press release E153:03 - 14 August 2003

A leaflet to help employers understand tax rules relating to the purchase of occupational health support has been published by the Health and Safety Executive (HSE).

The leaflet - Tax Rules and the Purchase of Occupational Health Support - sets out in broad terms the tax and National Insurance Contributions (NICs) treatment of occupational health support including those items that are tax deductible.

Elizabeth Gyngell, Head of HSE's Better Working Environment Division explained: "HSE has received many requests from small businesses asking for clearer information on the tax position regarding the provision of occupational health support and this has lead to a collaboration between HSE and Inland Revenue to produce this leaflet.

"It contains examples illustrating the rules regarding both deductions or allowances against business profits for the employer and benefits provided to or for the employee. We believe that early intervention after a workplace injury or illness can substantially reduce the likelihood of a person leaving employment permanently and that increasing the amount of Occupational Health support available would reduce the social costs of ill-health.

"We believe that most employers want to provide help for staff but part of the problem is that they need to be aware of what is possible. Greater clarity and consistency in the rules governing employee tax liability for occupational health support, such as is laid out in the leaflet being published today, will be very welcome.

Copies of Tax Rules and the Purchase of Occupational Health Support, can be accessed on the HSE website http://www.hse.gov.uk/pubns/ohindex.htm

Notes to editors

1. Following ministers' concern that lack of access to occupational health support contributed to health inequalities within the adult population, the Health and Safety Commission (HSC) and Department of Health (DoH) jointly published a report by the HSC's Occupational Health Advisory Committee. The Report and Recommendations on Improving Access to Occupational Health Support is on HSE's at: http://www.hse.gov.uk/hthdir/noframes/access.htm

2. Recommendation 10 of the report states that "small and medium sized enterprises should be made more aware through publicity and through the advice of intermediaries such as TECs, Business Link etc that occupational health support which furthers their business is tax deductible. "

3. The recommendations, which have relevance in Britain, are aimed primarily at making occupational health support and advice more readily available to small and medium enterprises and motivating them to seek such support.

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