Expenses and benefits: COVID-19 tests and equipment

As an employer providing COVID-19 tests and equipment, you have certain tax, National Insurance and reporting obligations.

COVID-19 tests

You do not have to pay tax or National Insurance on diagnostic tests for COVID-19 if:

  • your employees pay for tests and you pay them back
  • you provide tests for your employees directly

Healthcare workers may also be able to get a test through the free NHS programme.

Personal protective equipment (PPE)

You must provide your employees with personal protective equipment free of charge if your risk assessment shows that PPE is needed in their role.

If the employee has to buy their own PPE because you cannot provide it, you must reimburse them for it.

You do not have to pay tax or National Insurance if you provide your employees with PPE or reimburse them for the cost of buying their own.

If you do not reimburse the cost, your employee cannot claim tax relief on the expense.