Temporary measures for employee Covid swab tests

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Many employees have purchased Covid swab tests outside of the national testing programme for business reasons such as allowing them to travel internationally for business meetings. However, when the company reimburses the employee, that would normally be treated as earnings and attract income tax and Class 1 NICs. HMRC has addressed this and is introducing a temporary income tax exemption and National Insurance contributions (NICs) disregard, for employees who purchase tests so that that they will not incur income tax and NICs when they are reimbursed by their employer.

Further information about this measure will be published shortly on GOV.UK.