Tax
Health checks, paid for by your company, with an eba discount
Your company can pay for one health check a year for you and each member of staff with no income tax, no National Insurance and a corporation tax deduction, under section 320B ITEPA 2003. Here is how the exemption works, the pitfalls to avoid, and the 10% eba discount with TrueVitals.
By David ElliottBSc FCA, Founder & Managing PartnerFigures in this piece were checked on 13 November 2026. Rates and thresholds change, so confirm anything you are relying on.
Your company can pay for a health check for you, and for each of your staff, every tax year, with no tax or National Insurance for anyone, and a corporation tax deduction for the company.
Most directors we speak to do not know this exemption exists, and those who do often assume it only covers basic occupational health checks. In fact, it can cover a detailed private blood test with a clinician-reviewed report, which is exactly what our client TrueVitals offers, at 10% off for eba clients.
The rule: section 320B ITEPA 2003
Section 320B of the Income Tax (Earnings and Pensions) Act 2003 says that no income tax arises when an employer provides an employee with a health-screening assessment or a medical check-up. The conditions that have to be met are as follows.
- The employer must provide it. The law covers provision “on behalf of an employer”. In practice, the company contracts with and pays the provider directly, or gives the employee a voucher for it.
- One of each per tax year. The exemption covers one health-screening assessment and one medical check-up per employee in each tax year (6 April to 5 April). A second screening in the same year is taxable.
- More than one employer. If you have more than one employer at the same time, for example as a director of several companies in a group, the one-per-year limit applies across all of them, not per company.
- It must be for checking health, not treating it. A health-screening assessment identifies people who might be at particular risk of ill-health. A medical check-up is a physical examination by a health professional solely to determine your state of health. Tests connected with medical treatment, such as investigating symptoms you already have, fall outside the exemption.
- Employees only. Directors count, as they hold an office with the company. Family members do not, unless they are employees of the company themselves (that is, on the company’s payroll).
- It does not need to be offered to all staff. You can provide it to directors only, or to selected employees.
- The check-up does not need to follow a screening. You can have either, or both.
The tax benefits
For you and your staff: no income tax and no National Insurance. Because no income tax charge arises, there is no Class 1A National Insurance for the company either, and nothing to report on a P11D.
For the company: the cost is a staff welfare expense, deductible for corporation tax like salaries and other employee costs. At the 19% small profits rate, a £359.10 test costs the company £290.87 after tax relief (£269.33 at the 25% main rate of corporation tax).
Compared with paying personally: most of our director clients take a £12,570 salary and the rest as dividends. Dividend tax rose on 6 April 2026 to 10.75% (basic rate) and 35.75% (higher rate), so paying for a health check out of your own pocket now costs more. The table compares how much pre-tax company profit each route uses up, for TrueVitals’ Ultimate and Signature products. It assumes a small companies’ rate of 19% corporation tax and that your £500 dividend allowance is already used.
| Pre-tax profit used | Ultimate (£359.10) | Signature (£719.10) |
|---|---|---|
| Company pays directly (after-tax cost) | £290.87 | £582.47 |
| You pay from dividends, basic rate taxpayer | £402.35 | £805.71 |
| You pay from dividends, higher rate taxpayer | £558.91 | £1,119.22 |
Does TrueVitals qualify?
In our view, yes. We have checked TrueVitals’ tests against each condition, and both fall within the exemption when booked the way TrueVitals sets out.
As it is a blood-test screening rather than a physical examination, treat either test as your one health-screening assessment for the year. That leaves room for a separate medical check-up, such as an examination by a doctor, in the same tax year without any tax charge.
| Condition | How TrueVitals meets it |
|---|---|
| A health-screening assessment: identifies risk of ill-health | Both tests screen 140 or 230 biomarkers across heart, metabolism, hormones, liver, kidneys and more, with a lifestyle questionnaire. A clinician reviews the results and flags anything worth discussing with your GP. That is screening for risk, not treatment. |
| Provided by the employer | You book through eba’s links and pay on the company card, so the company contracts with and pays TrueVitals directly. Ask TrueVitals for the invoice in the company’s name. |
| One per tax year | Each test is a single assessment. The £29 home or office visit is part of the same assessment, not a second one. |
| Directors and selected staff | Available to any director or employee, and does not need to be offered to everyone. |
Getting it right: five pitfalls to avoid
- Do not pay personally and claim it back. The exemption covers provision by the employer, not reimbursement. If you pay on your own card and the company repays you, HMRC treats it as extra pay, with PAYE and Class 1 National Insurance through payroll. From April 2026, reimbursement was allowed for eye tests and flu jabs, but not for health screening.
- Do not use it to investigate symptoms. If you already have a health concern, a test to find the cause is connected with treatment and is not covered, so speak to your GP.
- Do not add family members. A test for your spouse or children is a taxable benefit, unless they are genuinely employed by the company (through payroll).
- Do not put it through salary sacrifice. Health screening is not a protected benefit under the optional remuneration rules. Offered in exchange for salary, it becomes taxable and reportable.
- Keep to one a year. Book each person’s test once per tax year. Ask for the invoice in the company’s name, not yours, and keep it with the company records, noting who the test was for.
One more point. A test for a shareholder who is not a director or employee does not qualify. If that applies to you, talk to us first.
The TrueVitals tests
| Test | What is included | eba price |
|---|---|---|
| Ultimate, at a clinic | 140 biomarkers, blood draw at one of 103 partner clinics, results usually within 4 working days | £359.10 (usually £399) |
| Ultimate, home or office visit | As above, with a phlebotomist visiting you anywhere in the UK | £388.10 |
| Signature | 230 biomarkers, adding specialist heart, autoimmune and hormone markers and physical measurements at a Randox Health clinic, results within 12 working days | £719.10 (usually £799) |
10% off for eba clients
We have arranged a 10% discount with TrueVitals. The booking links already have the discount applied, but remember to pay with the company card, and ask TrueVitals for the invoice in the company’s name.
After paying, you book your blood draw (a quick call for Ultimate, online for Signature) and complete a short lifestyle questionnaire. Your report arrives in an online dashboard. Questions about the tests go to support@truevitals.co.uk.
Over to you
An annual health check is one of the few benefits that is tax-free for you, free of National Insurance and tax-deductible for the company. With dividend tax now higher, it makes even more sense to let the company pay. If you would like to check how this applies to your business, or to plan which staff to include, speak to your eba adviser.
Frequently asked questions
Can my company pay for a health check without a tax charge?
Yes. Under section 320B ITEPA 2003, an employer can provide one health-screening assessment and one medical check-up per employee each tax year with no income tax and no National Insurance, and nothing to report on a P11D. The company must contract with and pay the provider directly, rather than reimbursing you for paying personally.
Does this cover company directors?
Yes. Directors count because they hold an office with the company, so a director can receive a tax-free health check in the same way as any employee. Family members do not qualify unless they are genuinely employed by the company through its payroll. A shareholder who is neither a director nor an employee does not qualify.
Can I pay for the test myself and claim it back from the company?
No. The exemption covers provision by the employer, not reimbursement. If you pay on your own card and the company repays you, HMRC treats it as extra pay, with PAYE and Class 1 National Insurance due through payroll. Always pay on the company card and ask for the invoice in the company’s name.
How much does the company actually save compared with paying personally?
Because the cost is deductible for corporation tax, a £359.10 test costs the company £290.87 after relief at 19%. Paid from dividends instead, the same test uses up £402.35 of profit for a basic rate taxpayer and £558.91 for a higher rate taxpayer, because dividend tax now runs at 10.75% and 35.75%.
How many health checks can each person have each year?
One health-screening assessment and one medical check-up per employee per tax year, running from 6 April to 5 April. A second screening in the same year is taxable. If you hold office with more than one company in a group, the one-per-year limit applies across all of them, not once per company.