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£500 tax exemption for medical treatments

26 June 2015

From 1 January 2015, as part of the new Fit for Work scheme, colleges can benefit from a new tax exemption of up to £500 per employee, per tax year where they fund recommended medical treatments. To qualify for the exemption, certain provisions need to be met: The medical treatment is recommended by a healthcare professional at either Fit for Work or an occupational health service that provides these services to the college. The recommendations must be provided to the college and employee in writing and as a minimum, state what is recommended. A health care professional must be a registered medical practitioner, a registered nurse, or a registered occupational therapist, physiotherapist or psychologist. The treatment must be aimed at assisting an employee return to work after a period of sickness absence or injury. A recommendation for treatment can only be provided if an employee has been assessed by a healthcare professional as unfit for work for at least 28 consecutive days. An assessment that an employee is unfit for work includes an assessment that the employee may be fit for work subject to the college making arrangements to enable the employee to return to work, providing that the employee does not return to work before a recommendation for medical treatment is made. Further information about the scheme can be found on the web links below: The Income Tax (Recommended Medical Treatment) Regulations 2014 The Income Tax (Recommended Medical Treatment) Regulations 2014 – Explanatory Memorandum Note