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Club membership


Produced by Tolley in association with
Employment Tax
Guidance

Club membership


Produced by Tolley in association with
Employment Tax
Guidance
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Introduction

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.

Club subscriptions

As there is almost always some element of personal benefit to the employee of 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 their 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.

When are the fees not taxable?

The leading case in this area is Utitz, in which the taxpayer argued that there was no taxable

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Philip Rutherford
Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company

Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties.   Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

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  • 14 Sep 2022 10:37

Home/ Tolley Tax Guidance/ Employment Tax / Providing benefits to employees

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