AXA PPP has applauded the Government's announcement on extending tax exemption on employer-paid occupational health treatments and noted that it had clearly listened to the insurance industry.
Discussing the announcement in yesterday's Autumn Statement, Elliott Hurst, AXA PPP healthcare director of health consulting, said:" It is particularly pleasing to see that HM Treasury seems to have acknowledged representations from parties - including both AXA PPP healthcare and the ABI - in proposing this change for inclusion in the Finance Bill 2014.
"This proposal from HM Treasury should be particularly welcomed by employers who currently provide occupational health services to support their absent or ill employees."
AXA noted that previously, the tax exemption was only linked to treatments recommended by the new Health and Work Service and so there was the potential for a tax inequality to emerge between employees being supported by their employer's occupational health service and the new Health and Work Service.
Hurst anticipated an effect on product design: "Going forward, this amendment to the benefit in kind tax regime may present providers, such as AXA PPP healthcare, with opportunities to consider products that could assist employers to pre-fund and budget for their occupational health needs yet still avail their employees with the benefit-in-kind tax exemption," he said.
