Businesses will benefit from tax relief when they pay to help their employees return to the workplace after sickness

Businesses will benefit from tax relief when they pay to help their employees return to the workplace after sickness.

Employers will receive tax relief on expenditure up to £500 on health treatment recommended by a new health and work assessment and advisory service to support employees to return to work after a period of sick absence.

This targeted tax relief will encourage employers to fund around 110,000 health-related interventions.  Without this tax relief the payments would be liable to income tax and employer National Insurance contributions.

The new health and work assessment and advisory service will provide occupational health expertise to many small businesses for the first time.

The Government will consult on the details of the tax relief later this year ahead of introduction with the service in 2014.

Funding for the new health and work assessment and advisory will be recycled from the Percentage Threshold Scheme (PTS) which will end in April 2014.

The new service was announced in the Government response to the independent review of sickness absence and will provide occupational health advice to employees, employers and GPs on the support and interventions needed to help employees move from sickness absence back into the workplace.