As the 2026 flu vaccination season approached, ICB reminds members of the BIK treatment if these are provided by the employer or reimbursed by the employer.
Up to 05 April 2026, where an employer provided certain low-value benefits-in-kind (BIKs), specifically eye tests and home working equipment, these were free from Income Tax. However, this exemption did not extend to costs where they were reimbursed by the employer. Which led to the confusing situation:
- Provided by the employer – no BIK consideration
- Reimbursed by the employer – a BIK consideration
UK Budget 2025 (point 4.207) announced this anomaly would be corrected from April 2026, i.e. tax year 2026/27. A Policy Paper issued alongside the UK Budget, updated in November 2025, confirmed this announcement and the addition of influenza (flu) vaccinations. Finance Act 2026 legislated for updates to the Income Tax (Earnings and Pensions) Act 2003.
From tax year 2026/27, eye tests, home working equipment and flu vaccinations are free from Income Tax regardless of whether they are employer-provided or employer-reimbursed.
For Bookkeepers
Note the exemption does not apply if the vaccination is provided through an Optional Remuneration Atrrangement (OpRA) / salary sacrifice agreement. See HMRC’s Employment Income Manual for more information.
ICB welcomed the policy intention when it was announced and we are pleased to remind members at this flu vaccination time of year. We agree this does reflect modern working practices whilst promoting fairness and consistency in the tax system. Further, it avoids a confusing situation for payroll professionals.