Gym Membership Part Funded By Employee

P11d/Class 1 Implications

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Hi all

A client of ours works in a building alongside a much larger company (no link between businesses) who pays a local gym corporate membership for its employees.

Our client has been offered to use this facility for its own employees. Our client pays £70 per month per employee to the larger company for any of their staff who wishes to use it. Our client has decided to deduct £35 per month from the employee so they basically get half price corporate rate membership.

I assume the half not made good by the employee will go on the P11d (until we start payrolling BIK) but are there any other implications to this setup?

Would it be worth treating as salary sacrifice (for as long as is allowable with the new rules) but if we did that would we sacrifice the whole amount or do half with the other half on the P11d?

Are there any problems because our client is not paying the gym directly?

Should the employee be paying class 1 on the other half?

Many thanks for any help

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By Kazmc
30th Mar 2017 09:15

Is there anyone that could help clarify any of my queries please?

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