Tax-Free Employee Health Benefits | Trueman Brown

Keep Your Team Fit and Healthy with Tax-Free Employee Health Benefits

At Trueman Brown, we help employers in Havering and beyond make the most of tax-free employee health benefits—a smart, compliant way to promote staff wellbeing while reducing costs.

With over 25 million working days lost annually to illness or stress, supporting staff health isn’t just good ethics—it’s good business.

Understanding Tax-Free Employee Health Benefits

HMRC offers several exemptions that allow businesses to fund staff health initiatives without triggering tax or National Insurance costs.

These tax-free employee health benefits help improve productivity and morale while staying fully compliant with UK tax law.

Gym Facilities and Memberships

Employers can offer tax-free employee health benefits by providing in-house gyms accessible to all staff. To qualify:

  • Facilities must be mainly for employees and not open to the public.

  • They can’t be in private homes or holiday properties.

  • They can’t involve vehicles such as boats or aircraft.

If on-site gyms aren’t possible, companies can negotiate discounted rates with local fitness centres.

While these may create a small tax liability, savings of 20–30% on membership fees remain attractive.

Infographic explaining how UK employers can offer tax-free employee health benefits to support staff wellbeing and reduce business tax costs.

​Health Screening and Medical Check-Ups

Employers may fund one tax-free employee health benefit each year through health screening or a medical check-up per employee.

In addition, up to £500 of employer-funded medical treatment recommended by an occupational health specialist is exempt from tax and NICs.

This includes treatment for employees signed off work for 28 consecutive days or more due to injury or illness.

Eye tests and corrective eyewear are also exempt where required for screen use.

Encouraging Active Lifestyles

Promoting activity at work—such as walking challenges or desk-stretch routines—can reduce stress and long-term illness.

Employers who embrace tax-free employee health benefits are investing in happier, more engaged teams while demonstrating social responsibility.

​How Trueman Brown Can Help With Tax-free employee health benefits

At Trueman Brown, we guide businesses through every aspect of tax-free employee health benefits—from identifying HMRC exemptions to managing benefit-in-kind reporting.

Our expert accountants ensure you stay compliant while maximising available savings.

📧 Email: mark@truemanbrown.co.uk
📞 Phone: 01708 397262

We’re here to help your business create a healthier, more productive workplace—without unnecessary tax burdens.

Frequently Asked Questions (FAQ)

Q1: What counts as a tax-free employee health benefit?
A: HMRC-approved exemptions such as workplace gyms, annual health screenings, eye tests, and some occupational health treatments.

Q2: Can employers pay for private medical insurance tax-free?
A: No—private medical insurance is a taxable benefit unless it falls within a specific exemption like occupational health recovery support.

Q3: Is there a spending limit on tax-free employee health benefits?
A: Yes—certain benefits (e.g., medical treatments) are capped at £500 per employee per year.

Q4: How do I report these benefits to HMRC?
A: Most qualifying tax-free benefits don’t need reporting, but any taxable portions must be declared via payroll or on a P11D.

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