If an employee or director undergoes medical treatment or diagnosis and the employer reimburses the employee, or settles his personal medical bill, the amount reimbursed, etc. is taxable (see ¶9095). See below regarding an exemption for recommended medical insurance.

However, if the employer contracts direct with the provider of the medical services, the cash equivalent of the benefit is the cost incurred by the employer in providing the treatment, less any amount which the employee or director makes good (see ¶9225).

However, there is no such benefit where:

the employee is provided with medical treatment outside the UK (including in-patient treatment); and

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