The Government has dropped its proposal to treat the cost of workplace COVID-19 tests in the same manner as company cars and private medical insurance. 

HMRC guidance published on 6 July suggested that the cost of an employer supplied test would be treated as a benefit in kind and taxed accordingly. 

This sparked outrage from many as this approach would leave key workers out of pocket whilst simply trying to return to work. The move could also worryingly result in employees avoiding tests in order to reduce their tax costs. 

The Government has explained that this proposal will not be progressed and the HMRC guidance will be updated shortly.