Tax relief set to help employers manage sickness absence

Business owners are advised that they will be able to benefit from tax relief when they pay to help their employees return to work after sickness.

Employers will receive tax relief on expenditure of up to £500 on support such as health treatment that has been recommended by a new health and work assessment and advisory service.

The measure was announced in the Budget on 20 March.  The Government will consult on the details of the tax relief later this year ahead of the introduction of the health and work assessment and advisory service in 2014.

The service, which was first announced by the Government in January, will provide occupational health expertise to many small businesses for the first time.  It will provide an occupational health assessment after four weeks of sickness absence, following which it will ensure individuals receive the most appropriate interventions, case management and follow-up support.

More than 130 million working days are lost to sickness absence, so the introduction of this tax relief and the new assessment and advisory service should hopefully help businesses hold on to their staff and help them stay in work.

We await the outcome of the consultation but in the meantime should you require any further information, please contact Paul Wilkinson at the office.