½Û×ÓÊÓƵ

Club membership

Produced by Tolley in association with
Employment Tax
Guidance

Club membership

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

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

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
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.

Powered by

Popular Articles

Group relief for carried-forward losses

Group relief for carried-forward lossesThis guidance note examines in detail the relief available to groups for carried-forward losses. The scope excludes the treatment of specialist businesses such as banks, insurance companies and oil and gas companies.From 1 April 2017, companies can surrender

14 Jul 2020 11:50 | Produced by Tolley Read more Read more

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more Read more