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Employer health-related expenditure set for tax exemption

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The government is consulting until 16 August 2013 on the implementation of the proposed exemption from tax and NIC for amounts paid by employers up to a maximum of £500 on health-related interventions recommended by the Health and Work Assessment and Advisory Service. The £500 cap will apply per employee over a complete tax year. It will be valid for more than one health-related intervention recommended by the new service, subject to the overall annual limit. The exemption will be limited to treatment and therapies recommended by the new service, and any expenditure over the £500 cap will be classed as payment of earnings or a benefit-in-kind, depending on the type of expenditure, and will be subject to the appropriate deduction of income tax or reporting on form P11D, and either class 1 or class 1A NICs.