Flu jabs | Subject to tax?

With flu season now upon us, many employers may be considering footing the bill for their employees’ flu immunisations.

HMRC classify the provision of seasonal flu immunisations to an employee as a trivial benefit, which, if less than £50, is not subject to income tax. However, despite lobbying, this classification ONLY applies if the employee does not pay for their flu jab personally.

If an employee pays for their own flu jab and is reimbursed for the cost, the reimbursed amount is subject to PAYE income tax and Class 1 National Insurance Contributions (NIC) in the month of reimbursement. This causes an additional cost to both the employee and employer.

Under current rules, to provide employees with tax and NIC free seasonal flu jabs, employers should do one of the following:

1. Organise and pay for the immunisations directly, e.g., run a clinic on the business’ premises.
2. Provide employees with a voucher to acquire an immunisation.

Please contact a member of the Employment Tax team for further advice.