On Monday, HMRC said that Covid-19 tests would be treated as a "benefit in kind", and so would be subject to extra income tax for employees.
However, after questions in the House of Commons about the issue, the Treasury granted tax exemption for the tests.
The exemption will be in effect for any tests that have taken place during the current 2020-21 tax year.
Treasury spokesperson said:
"Given the importance of widespread testing, we want to ensure that all employers who wish to provide third party testing to their employees can do so without increasing their tax liability.
So we will introduce a new income tax exemption for Covid-19 antigen tests provided by employers.
HMRC will amend their guidance as soon as possible to reflect this change."
Hey ho, stand by for confusion!
Tax does have to be taxing.
Tax Investigation Insurance
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