If you are off work with medical problems your employer may be able to pay £500 tax-free and NIC free to the employee to pay for help in getting back to work. This applies to contractor companies as well as larger companies; it is even more important that single person contractor companies can continue to work, afterall, if you don’t work you don’t get paid!
How do you qualify for this payment?
You need to be seen by either the Health Worker Service (HWS) or by a company paid for occupational therapist. Based on their recommendations the company can pay for up to £500 of treatment.
Harry is absent from work due to back problems. He is referred to his employer’s in-house occupational health scheme where a registered nurse confirms that if certain work place adjustments are made he ‘may be fit’ for work but otherwise is likely to be absent for at least 28 days. The registered nurse also provides a written recommendation for a course of physiotherapy and Harry gives his consent for this to be shared with his employer, XYZ & Sons.
Following discussions between Harry and his employer, adjustments are made to his workplace that enable him to return to work before starting the physiotherapy sessions 8 days after his return.
As the qualifying criteria have been met, the expenditure by XYZ & Sons will qualify for the exemption, up to a maximum of £500 for the tax year.
And an example that doesn’t qualify…
John injures his hand and is unable to carry out his duties as a driver. He attends hospital on the day of his injury where he is advised that he is expected to be absent from his work as a driver for at least 28 days. The hospital doctor refers John to the HWS and provides a Fit Note for the next two weeks advising that he ‘may be fit’ if he can undertake amended duties.
The HWS provides a written RtWP recommending 8 physiotherapy sessions and John gives his consent for this to be shared with his employer, PQ Ltd. He discusses with his employer a return to work on amended duties and PQ Ltd agree to arrange and pay for the recommended medical treatment. Following his return John is able to carry out his amended duties fully, so PQ Ltd delay arranging his treatment. After 2 months John’s injury starts to affect his general health and his employer then arranges, and pays for, the recommended physiotherapy sessions.
As the treatment has not been provided to assist John to return to work, the expenditure by PQ Ltd does not qualify for the exemption.
If you work in your own contractor company and you need medical help to return to work, then this scheme could help you. Please contact Clearways Accountants if you require assistance on 01737 244298.
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