THE boss of a Bradford-based health benefits company has stepped up a campaign for a key tax reform it wants to see introduced.

Russ Piper, chief executive of cash plan provider Sovereign Health Care, took the case for exempting health insurance policies that are funded by employers from being treated as taxable benefits to Westminster where he briefed Shipley MP Philip Davies about the proposals.

Sovereign wants to see policies funded by businesses, on behalf of their employees, no longer treated as taxable benefits which have to be declared annually to HM Revenue & Customs on P11D forms.

Mr Piper said employers often cited the significant cost and time involved in administering the P11D requirements, which they regard as excessive for such low-cost benefits, as a reason for refusing to fund cash plans for employees.

Adopting Sovereign’s recommendation would make everyday healthcare affordable and accessible for more workers, as many employers would find cash plans an attractive benefit to offer staff .

Mr Piper said changing the rules could also help ease pressure on the hard-pressed NHS and HM Revenue & Customs, which continue to suffer from staff and budget cuts.

Philip Davies advised on how to pursue Sovereign’s campaign through Parliament and direct contact with senior cabinet ministers and offered to provide some practical help.

Mr Piper said : “I’m grateful to Mr Davies for the time he gave me, the guidance he provided and the hands-on assistance he offered.

“In making my case to him for the reform, I pointed out that the tax treatment of cash plans was illogical, particularly when you consider that if a business pays up to £500 to fund recommended medical treatment to help an employee return to work after illness or injury, this is exempt from income tax and therefore not classed as a P11D benefit. Cash plans, on the other hand, which encourage people to be proactive about their health care to try and avoid being off sick in the first place, and being a burden on the NHS, are taxed.”

Mr Davies said: “Sovereign’s headquarters are in a constituency which adjoins my own and I enjoyed meeting Mr Piper. It was very interesting to hear more about the organisation’s beliefs about the P11D issue and its reasons for holding them. I understand why Sovereign feels as it does and am happy to provide advice and assistance to the organisation, as it seeks to progress its campaign.”

Mr Piper has previously urged Chancellor George Osborne to cut taxes on cash plan premiums and briefed Bradford South MP Gerry Sutcliffe about the proposed changes in the coming Budget.