The Income Tax (Benefits in Kind) (Exemption for Welfare Counselling) (Amendment) Regulations, SI 2020/291, extend the existing exemption from income tax for employer provided ‘welfare counselling’ to include counselling which also constitutes a medical treatment. This means that an employer can provide specialist counselling services such as cognitive behavioural therapy or interpersonal therapy, without a tax liability being incurred.
The regulations come into force on 6 April 2020. HMRC has also issued a tax information and impact note on the changes.
The Income Tax (Benefits in Kind) (Exemption for Welfare Counselling) (Amendment) Regulations, SI 2020/291, extend the existing exemption from income tax for employer provided ‘welfare counselling’ to include counselling which also constitutes a medical treatment. This means that an employer can provide specialist counselling services such as cognitive behavioural therapy or interpersonal therapy, without a tax liability being incurred.
The regulations come into force on 6 April 2020. HMRC has also issued a tax information and impact note on the changes.
