Can We Claim Input Tax on a Gym Membership Scheme?

Leg with trainer shoe on, on a gym mat

As the new year unfolds, businesses may want to invest in their most valuable asset: their employees. One impactful way to support staff well-being and productivity is by offering corporate memberships to a gym, and there’s no better time than in January. Let’s look at what benefits it could bring to a business:

  • Promoting Health and Wellness – January symbolises fresh starts and resolutions, with many individuals aspiring to lead healthier lifestyles. By providing access to a gym, you empower employees to kickstart their fitness journey. This gesture emphasises your commitment to their well-being, fostering a workplace culture that values health.
  • Enhance Productivity and Engagement – Regular exercise isn’t just about physical health—it significantly impacts mental well-being too. Employees who exercise often report reduced stress levels, improved focus, and increased energy. A gym membership encourages regular physical activity, translating into a more focused and engaged workforce.
  • Strengthen Team Dynamics – Shared experiences foster camaraderie. Encouraging employees to join the gym together can create a sense of community and teamwork outside the office. Group workouts or classes provide opportunities for team building, fostering stronger relationships among colleagues.
  • Attract and Retain Top Talent – Offering corporate gym memberships can set your company apart in the eyes of potential hires. In today’s competitive job market, comprehensive wellness benefits can be a deciding factor for candidates. Additionally, it contributes to employee retention, as individuals are more likely to stay with a company that invests in their holistic well-being.
  • Cost-Effective Investment – Contrary to common belief, the cost of providing gym memberships often outweighs the long-term benefits. Healthier employees tend to have lower healthcare costs, reduced absenteeism, and increased productivity, making it a financially savvy investment in the long run.

Can we claim input tax on a company gym membership scheme?

If provided for all staff, a corporate gym membership scheme is deemed to be for the business purpose of rewarding and motivating staff. In this case, then input tax can be claimed on the expense without output tax being payable.

However, if a specific employee were to be given free membership as part of their remuneration package, output tax would have to be paid on the value of this facility provided, this will cancel out the input tax claim.

So, why wait? Start the year on the right foot by providing the gift of health and vitality to your employees through corporate gym memberships. It’s an investment that pays dividends well beyond the confines of the workplace.

These are the types of questions we also get asked in our weekly Sage Lady Academy Q&A sessions. Our membership provides affordable training, support and mentoring from Bec (aka “The Sage Lady”) on all matters relating to Sage 50 Accounts, bookkeeping and accounting principles via training, masterclasses and our weekly Live Q&A, where you can submit questions for Bec to answer and show you how it’s done, plus much more!

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“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

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