Tax breaks for CGM or Libre

For adult CGM and Libre users who are employed by helpful employers: there is a tax break available to employers who supply CGM or Libre to their employees.

In April 2019 JDRF checked with HMRC and we are pleased that this tax break for CGM and Libre still applies.

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