New guidance from HMRC

New guidance from HMRC in respect of (1) Medical Treatment to help an employee return to work and (2) Hiring out of School Theatres

Recommended medical treatment to help an employee return to work

Expenditure by employers on medical treatment for employees is generally chargeable to income tax.

From the 1 January 2015 an exemption from income tax applies, where an employer funds recommended medical treatment up to £500 per tax year per employee, that meets specific requirements.

In summary these are:

• Before the medical treatment the employee must have been assessed as unfit for work due to injury or ill health for at least  28 consecutive days or have been absent from work due to injury or ill health for at least 28 consecutive days.
• The treatment is provided for the purposes of assisting the employee to return to work following a recommendation provided by a health care professional.

More detailed guidance is available on the HMRC website

Hiring out of school theatres

HM Revenue & Customs have issued new guidance relating to theatre hire.

They have commented that there is no one simple answer to this issue and the VAT treatment will depend on the exact circumstances of the transaction.

In principle where a theatre is let with no additional services the letting will be VAT exempt. However where the school provides any additional services, such as lighting technicians, box office etc. the whole of the hire will be standard rated.

Queries

If you have any queries, please contact

Bob Lane
Taxation Accountant
Finance & Procurement
Telephone:  03000 416369
Email:  bob.lane@kent.gov.uk