Budget 2021: Chancellor of the Exchequer Rishi Sunak has announced that the income tax exemptions for Covid-19 tests and home office expenses will be extended.
In his Budget 2021, Sunak announced that the tax exemption and national insurance contributions (NICs) disregard for Covid-19 (Coronavirus) antigen tests provided by, or reimbursed by, employers and for employer-reimbursed expenses covering the cost of home office equipment, will continue into the 2021/22 tax year.
The Government had originally ruled that the tests should be classed as a taxable benefit and subject to income tax charges. However, following concerns raised by the treasury committee in July 2020 that employees who require regular testing in industries such as healthcare and hospitality would have to pay multiple tax charges, the decision was reversed.
