As freelancers, consultants, and contractors paying attention to the health and wellness of yourself (as well as your company) is crucial. One way to promote a balance and potentially save tax is through company-sponsored health screenings and medical check-ups. It’s not just beneficial for employee health — it's also a savvy business decision.
Your company can fund one health screening and one medical check-up per employee each year. Here’s what that means for you:
For these check-ups and screenings to be tax-exempt, they must meet the following criteria:
This perk is not just a boon for your well-being but also serves as a tax-efficient measure for your business. Ensuring these medical benefits are properly structured can result in significant tax savings.
Let's use a real world example below to illustrate how you could save £417 of tax using this tax tip.
Let's assume that:
Total tax savings:
Adding all these savings together gives you a total tax saving of £417, simply by buying the medical check-up through the business, rather than paying for it personally.
Not only is the company benefiting from healthier employees, but you’re also maximising company finances in a tax-efficient manner.
Claiming the tax saving in Mighty is incredibly easy, here's how to do so in 3 simple steps.
And that's it, you've just saved yourself over £417 of tax 100% legally!
If you're not with Mighty: Make a note of this transaction and let your accountant know what the specification transaction(s) is for. They should then be able to claim the exemption and apply the tax deduction manually for you.
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Automate your bookkeeping, enjoy real-time tax insights, and effortlessly claim tax savings on health check-ups with our easy-to-use system and expert support.
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