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Tax exemptions: Employer-reimbursed coronavirus antigen tests and easement for employer-provided cycles exemption

17 December 2020

Proposing MP
Hereford and South Herefordshire
Type
Written Ministerial Statement
Department
Treasury

At a Glance

Issue Summary

The statement discusses tax exemptions for employer-reimbursed coronavirus antigen tests and an easement for employer-provided cycles during the COVID-19 pandemic.

Action Requested

The Government is introducing income tax exemptions and National Insurance contributions (NICs) disregards for employer-reimbursed coronavirus antigen tests and providing a time-limited easement to disapply the qualifying journeys condition for Cycle to Work schemes until April 2022. These measures ensure that employees are not taxed on these benefits during the pandemic.

Key Facts

  • The Government introduced NICs regulations - The Social Security Contributions (Disregarded Payments) (Coronavirus) (No. 2) Regulations 2020 (SI 2020/1523) on 14 December.
  • The easement for Cycle to Work schemes will be in place until 5 April 2022.
  • The tax exemption and NICs disregard apply to employer-reimbursed coronavirus antigen tests carried out during the current tax year 2020-21.
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Summary accuracy