Which criminal record certificate fees are exempt under section 326A?

Fees for criminal record certificates and enhanced criminal record certificates under the Police Act 1997 are exempt, but only where the certificate application is made at the same time as an application for the certificate to be subject to update arrangements. Fees for updating certificates are also exempt without this condition.

Can the section 326A exemption be extended beyond Scotland?

Yes. The Treasury has the power to make an order extending the exemption to cover fees payable in connection with any scheme in England and Wales or Northern Ireland that corresponds to the Scottish Protection of Vulnerable Groups Scheme. The Treasury can also subsequently amend or remove any such additions.

What would happen without the section 326A exemption if an employer pays a monitoring scheme fee?

Without the section 326A exemption, a fee paid or reimbursed by an employer for an employee to join a vulnerable persons monitoring scheme could be treated as a taxable benefit in kind. The employee would then be liable to pay income tax on the amount of the fee paid on their behalf.

Income Tax (Earnings and Pensions) Act 2003 section 326A

Fees relating to monitoring schemes relating to vulnerable persons

Section 326A provides an income tax exemption for fees paid or reimbursed by employers in connection with monitoring schemes that check whether individuals are suitable to work with vulnerable persons.

No income tax arises when an employer pays or reimburses an employee's fee to join the Protection of Vulnerable Groups Scheme in Scotland or for related criminal record and update certificates under the Police Act 1997
The exemption covers fees for criminal record certificates and enhanced criminal record certificates, but only where these are applied for at the same time as an application for the certificate to be subject to update arrangements
The exemption also covers fees for updating certificates under the Police Act 1997
The Treasury has the power to extend the exemption by order to cover fees for corresponding schemes in England and Wales or Northern Ireland, and to amend or remove any such additions

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