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I want my Company to pay the Golf Club membership for my staff as a gift. Can I provide it as a benefit?#AskAMS

I want my Company to pay the Golf Club membership for my staff as a gift. Can I provide it as a benefit? I understand it’s allowable even for Directors. Are there consequences?

Your Company could pay the membership – and it would obtain tax relief, and reduce your Corporation Tax bill. But, it would be a taxable Benefit in Kind (BIK) for you and your staff. The BIK would have to be divided in a fair way – perhaps the number of times anyone uses the club. You would all have to pay extra income tax – and your Company would have to pay extra National Insurance.

If you take customers to the Club, it could reduce the taxable BIK - because some of the cost would count as entertainment (which is itself not tax-deductible). Basically, either way, there are tax consequences.

 

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