*** This is currently under review for the new tax year – please refer to the HMRC for the latest detail ***
How the tax break for CGM and Libre works
- The employer meets the costs of the equipment
- The employer has to make the purchase and pay the supplier direct; there must be no reimbursement to the employee. The equipment can be sent direct to the employee
- The employer gets a tax deduction for the expense, but there should be no tax or National Insurance contribution for the employee; it is considered a provision of a non-taxable benefit
- The employer needs to roughly calculate the annual cost
- Then the employer should notify the PAYE tax office that this benefit is being provided to the employee (and would be available to all employees disabled by type 1 diabetes) and it is considered not to be a benefit in kind because of the Statutory Instrument. The employer should also cite the HMRC Manual.
- The employer should request an answer within 30 days
- View the relevant part of the HMRC Manual