HMRC have recently adjusted their view of employer reimbursed costs such as eye tests and glasses/contact lenses. HMRC now state that where employees are reimbursed the cost of eye tests/glasses/lenses, the exemption for eye tests, and similar costs will not be met and should be reported through the payroll for PAYE/NIC deductions as a cash payment.
Only where eye tests/glasses/lenses are paid directly by the employer will the exemption be met. HMRC have confirmed that if an employer uses a non-cash voucher scheme for the provision of eye test vouchers, the exemption will be met.
Our current policy has been updated to reflect these changes. We have set up an arrangement with Specsavers to provide staff with eye test and spectacle/contact lenses vouchers if they are eligible under the Display Screen Equipment (DSE) legislation.
What's different going forward?
Instead of claiming the cost of their eye test after a visit to the optician, employees will need to request an eye test examination voucher via HR before they go to their appointment.
- Specsavers then email vouchers to individuals (takes two to three days) – the voucher covers the cost of the eye test, whatever the cost.
- If an individual requires glasses/lenses, HR will instruct Specsavers to email the individual a glasses/spectacle voucher. Individuals will need to provide proof that glassses/lenses are required.
Complete the eyecare voucher request form via. TopDesk to request eye test or glasses vouchers.
For more information, please refer to the policy.