HM Treasury has published a consultation on the implementation of a new targeted tax exemption for employer expenditure on health-related interventions to help an employee return to work.

Following the recommendation of the report Health at work - an independent review of sickness absence, commissioned by the Department of Work and Pensions (DWP) and the Department for Business, Innovation and Skills (BIS), a health and work assessment and advisory service will be introduced during 2014 to conduct a health assessment when an individual has been on sick leave for four weeks, and provide advice on how they can return to work.

Where the new service recommends health-related interventions to help an employee return to work and an employer funds such interventions, the expenditure, up to a cap of £500, will be exempt from income tax and National Insurance Contributions (NICs).

This consultation seeks views on the implementation of the new targeted tax exemption in relation to the following: employer administrative burdens: whether the new exemption will encourage employers to pay for the recommended health interventions and if so, will it be available to all or only selected employees; funding interventions and employees contributions; and whether the £500 cap will cover most recommended interventions.

The consultation closes for comment on 16 August 2013.

More details are available from Gov.uk HERE