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HMRC internal manual

Employment Income Manual

Employment income: club membership fees

Section 62 ITEPA 2003

A club subscription is normally a pecuniary (that is, financial) liability of the club member. If an employer bears the cost of such a subscription on behalf of the employee, the amount paid is taxable as earnings within Section 62 ITEPA 2003 (see EIM00580).

If the employer pays a composite subscription entitling all his employees to membership, liability arises on directors and employees (who are not lower paid for 2015/16 and earlier only) (see EIM21700). Any reasonable apportionment should be accepted.

As regards allowable deductions for club subscriptions see EIM32500.