If either yourself or your employees are members of a local gym it’s important to note the benefits of paying for the gym membership through your limited company. You can only claim back for a part of your gym membership however this saving, especially if you’ve got multiple employees signed up for a membership, can quickly start to add up.
If your company itself covers the whole cost of the gym membership, yourself and any other employees may be liable to pay the tax for these services being provided. However, when it comes claiming back these costs your company can claim back these costs as VAT at the end of the year meaning that it is a lot more cost-effective to pay these membership costs through your business rather than personally.
Another thing to note is that when it comes to the time for your self-assessment you will receive a BIK or BUsiness In-Kind charge. This charge will come in the form of a tax percentage and that can range from anywhere from 20% up to 45% dependent upon your individual income. On top of this, the company will incur a national insurance charge which at current it 13.8% of how much has been paid for the membership.
Claiming on your gym membership is just one of many expenses you can claim through your limited company. You can also claim for a range of other health schemes through your expenses. If you want to know more about which expenses you can offset against your annual tax bill get in touch with the team here at D&K Accounting.