This guide explains your tax and National Insurance contributions (NICs) obligations if you cover the cost of an employee’s club membership – for example, membership of a golf club or dining club. Your obligations differ depending on precisely how you cover the cost.
On this page:
You arrange a club membership for one of your employees, and pay the fees directly to the club.
For employees earning at less than a rate of £8,500 per year, you have:
For company directors or employees earning at a rate of £8,500 or more per year:
The value to use is the amount you pay for the membership.
Your employee arranges their membership of a club, but you pay the fees directly to the club.
For employees earning at a rate of less than £8,500 per year:
For company directors or employees earning at a rate of £8,500 or more per year:
The value to use is the amount you pay for the membership.
Your employee arranges their membership and pays the fees to the club, but you then reimburse them.
The reimbursed amount counts as earnings, so:
The value to use is the amount you reimburse to your employee.
It’s important to choose correctly between forms P11D and P9D for each employee. The form to use depends on the whether the employee is a director of your company and on whether their earnings are above or below an annual rate of £8,500. For more information – including details of what’s included in the £8,500 threshold - follow the link below.
EIM21696: Club membership fees
