Expenses and benefits: club membership

As an employer covering the cost of club membership for your employees, you have certain tax, National Insurance and reporting obligations.

What to report and pay

What you report to HM Revenue and Customs (HMRC) depends on who arranges the membership and who pays the club.

If you pay fees for an employee

You must:

If your employee arranges membership but you pay the fees

You must:

If your employee pays fees but you reimburse them

This counts as earnings. Add the amount to your employee’s other earnings, and deduct and pay PAYE tax and Class 1 National Insurance through payroll.

Salary sacrifice arrangements

If the cost of the membership fees is less than the amount of salary given up, report the salary amount instead.

These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.

Additional guidance

The following guides contain more detailed information: