Company pays as part of my contract....

[Suffolk-Matt]

Was just a thought.... and seeing as the accountant is off until the new year, Ill pick some brains here.

 

Redoing the gym membership tomorrow with the other half, both on PAYE, LTD company, im sole director.

 

Could the membership be part of our 'contracts', what's the score with 'getting the company to pay for it'?

[Paul Jenks]

A gray area. You'd have to make sure that it is clearly written into your contract of employment or at least mentioned and then listed as a staff benefit in your company handbook. You may also have to get a corporate membership, though this may be going too far.

I feel it should fly, depends on whether your accountant is comfortable with it.

It's reasonable to expect that keeping fit is a core responsibility of directors to ensure the health and vitality of the leadership team.

[GardenKit]

I guess it may then be termed as a benefit which you as employee will be taxed on

[Suffolk-Matt]

Did a google on this last night. Seems to be a benifit.

 

So if i think i have this right..... on a salary of 10k ( just under) I would need to knock off the yearly cost of the membership ( about 1k) to keep myself within the lowest NI and income tax brackets.

 

Will wait until accountant has surfaced from the Christmas break and ask him before commiting to anything.

[kevinjohnsonmbe]

This might be a bit of a wild card, but I know a chap who got the VAT back on a hot tub with a Dr's letter stating that it was necessary for treating a bad back.

 

So to take that a step further, could it not be argued that a health / fitness / spa membership could be a necessary measure to ease aching bones at the end of a hard week in the trees?

 

If the accountant is happy?????

[Inoff the Red]

I suspect HMRC would challenge payment of gym fees by the company as not being wholly, exclusively and necessarily for the purposes of the trade and so you would need to be able to demonstrate that is was a genuine business cost.

 

If it was a condition in your company's contracts of employment that because of the nature of the job continuing employment required employees to be physically fit and maintain a certain level of fitness then you may stand a chance of claiming the cost of gym membership was a business cost.

 

However, rather than just claiming gym fees and keeping quiet hoping HMRC didn't ask any questions if you claimed I'd suggest advising HMRC what you have done and why and then be prepared to argue the case with HMRC.

 

Alternatively, if the company pays your gym membership it will appear on your P11d as a benefit in kind and you will pay tax on it and the company will have a national insurance charge also. At least that way the cost to you would be the tax on the benefit rather than paying the full gym membership out of taxed income.

[Steve Bullman]

This might be a bit of a wild card, but I know a chap who got the VAT back on a hot tub with a Dr's letter stating that it was necessary for treating a bad back.

 

So to take that a step further, could it not be argued that a health / fitness / spa membership could be a necessary measure to ease aching bones at the end of a hard week in the trees?

 

If the accountant is happy?????

 

Im not sure about all of that. My account said I can't claim for osteo or chiro work, even though I could argue that without it I would lose out on a few days work here and there

[Hodge]

Im not sure about all of that. My account said I can't claim for osteo or chiro work, even though I could argue that without it I would lose out on a few days work here and there

 

 

That's funny as my accountant said I could and did claim for my osteo and massage??