Club membership

Our experts tell you how to treat the costs of club membership when reporting to HMRC

Our experts at DSR Tax Claims know how hard it is to find good, quality information about HMRC’s tax regulations that is easy to understand, and that’s why we have created these handy guides to tell you everything you need to know. Our aim is to make life easier for our clients and that is why we want to share our expertise with you. You can also call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

How do you report club membership expenses to HMRC?

If you cover the costs of club membership for your employees, you need to report these expenses to HMRC and you will also have certain tax and National Insurance obligations as a result. What you report to HMRC depends on who arranges the membership and who pays the club.

If you pay the fees for an employee, you have to report this to HMRC on your P11D form and you will have to pay Class 1A National Insurance on the value of the membership. However, if the employee arranges the membership but you pay the fees, it still needs reporting to HMRC on your P11D form but you would deduct and pay Class 1 National Insurance through payroll.

If your employee pays the fees and you later reimburse them, this would count as additional earnings as far as HMRC are concerned so you would need to add the amount of the reimbursed fees to their other earnings and deduct and pay PAYE and Class 1 National Insurance as you would for the rest of their earnings through payroll.

If the fees are subject to a salary sacrifice arrangement, and the fees are less than the amount of salary sacrificed, report the salary amount instead. This only applies to salary sacrifice arrangements made after 6th April 2017.

How can DSR Tax Claims help?

We aim to make life as simple as possible for our clients and that includes giving you the information you need to make your taxes (and your life) simpler and less stressful.  Our team of experts at DSR Tax Claims are always on hand to help our clients and our excellent standing with HMRC means that we can make sure you don’t fall foul of their regulations, while claiming your maximum tax relief. We can even take care of all that paperwork and deal with HMRC on your behalf too. Call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

This page was last updated on 06/11/2018.

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