As an employer, you don’t have any tax, National Insurance or reporting obligations if you provide welfare counselling services for your employees.
The counselling service must be:
- for welfare issues, such as bereavement, ill health or stress, problems at work, sexual abuse or personal relationship difficulties
- available to all your employees
The counselling service can’t offer:
- tax advice
- legal advice
- financial advice on any matter other than debt problems
- advice relating to leisure or recreation
- medical treatment
Salary sacrifice arrangements
If you provide counselling as part of a salary sacrifice arrangement it won’t be exempt. You’ll need to report on form P11D whichever amount is higher:
- the salary given up
- the cost of the counselling
These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.
Read more detailed information on exemption for welfare counselling.