The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
The provision of a club membership by an employer to an employee almost always gives rise to a taxable benefit. How the membership is paid determines the tax and NIC treatment. The rare circumstance in which there is no taxable benefit is highlighted below.
As there is almost always some personal element to a club membership or subscription, it almost always gives rise to a taxable benefit. The cost of the membership fees is the amount subject to tax and NIC.
For example, if an employer pays for a golf club’s green fees for a member of staff, the individual can use the club for his own leisure purposes in addition to any business-related use (eg client entertainment).
How the amount is paid or reimbursed has an impact on the tax and reporting requirements, which are outlined below.
HMRC guidance is at EIM21696.
The leading case in this area is Utitz, in
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