UK EAPA RESPONDS TO ISSUE OF EAP TAX RELIEF
Dated: 14/03/2011
The UK Employee Assistance Profesionals Association (EAPA) notes the 'Review of Tax Reliefs' report presented to the Chancellor by the Office for Tax Simplification in March 2011 and its recommendations that the tax relief benefits on EAP’s be abolished and, as an alternative, consideration could be given to replacing it with a de minimus level for benefits.
“An Employee Assistance Programme (EAP) is a strategic intervention and valuable organisational tool that addresses team and individual performance and supports wellbeing in the workplace," explains David Smith, chairman of the UK Employee Assistance Professionals Association.
"Given the unique role that EAPs have in the workplace they should not be regarded as employee benefits and therefore should not be classified as such when it comes to taxation or tax relief. In this regard, the UK Employee Assistance Professionals Association believe EAPs should continue to be tax exempt although their low cost means that they may fall under a newly clarified de minimus threshold," he says.
"We await the 2011 Budget statement to confirm the Chancellor's decision on the future of tax relief when it comes to EAPs. In the meantime the UK Employee Assistance Professionals Association continues to represent the interests of employee assistance, psychological health and wellbeing professionals by, for example, investing in research to review the effectiveness and cost-effectiveness of programmes and supporting purchasers and providers of programmes to provide the highest standards of support and service to organisations, their employees and managers" says David Smith.
NOTES & INFORMATION
- For more information or to talk with a member of the UK EAPA contact Liz Guilford (07734 543 825 / liz@melbournecommunications.com) or go to www.eapa.org.uk.
- The Office of Tax Simplification report, 'Review of Tax Reliefs' can be read in full at http://www.hm-treasury.gov.uk/d/ots_review_tax_reliefs_final_report.pdf.
- The UK Employee Assistance Professionals Association represents the interests of professionals concerned with employee assistance, psychological health and wellbeing in the UK. EAPA members include external and internal employee assistance programme providers, purchasers, counsellors, consultants and trainers.
- Over 5,200 organisations - representing over 8.2 million employees - currently have access to the support, advice and counselling of an employee assistance programme. An EAP is a worksite-focused programme that assists in the identification and resolution of employee concerns, which affect, or may affect, performance. Such employee concerns typically include, but are not limited to personal matters (for example, health, relationship, family, financial, emotional, legal, anxiety, alcohol, drugs and other related issues) as well as work matters (including work demands, working relationships, harassment and bullying and work/life balance). An EAP includes a mechanism for providing counselling and other forms of assistance, advice and information to employees on a systematic and uniform basis.
