Gym membership via employer
A gym membership for your employees not only offers health benefits but can also be tax-efficient for both employer and employee. Discover how you can offer this popular perk via the work-related costs scheme.
What is the work-related costs scheme (WKR)?
A gym membership for your employees is a popular employer exemption within the work-related costs scheme (WKR). But what exactly does this scheme entail? The WKR allows employers to provide certain allowances, gifts, and benefits to employees tax-free, such as a gym membership, Christmas hamper, or gift voucher. For this, the employer receives an exempted budget: the ‘discretionary margin’.
How does a gym membership fit into the WKR?
A gym membership for employees falls within this discretionary margin and is therefore tax-free, provided it meets a number of conditions. The employer pays no tax on this membership, and the employee benefits from a full net sports benefit on top of their regular salary.
What are the conditions for the WKR?
To be able to provide a gym membership tax-free to your employees via the WKR, the following main conditions apply:
- The gym membership must be designated in advance as work-related costs.
- The costs may not exceed £2,400 per employee per year (this includes all allowances) when added together.
- The membership is accessible to 80% or more of your staff. In principle, you cannot grant the benefit to only certain employees.
If you meet these requirements, you will benefit optimally from the advantages of a gym membership via the employer.
Benefits of a gym membership via the employer
A gym membership via the employer brings several advantages. Below, we tell you more about these benefits and exactly who they are for.
Tax benefit
The greatest advantage is, of course, the tax benefit for both employer and employee. By offering the gym membership tax-free from the discretionary margin of the WKR, no income tax or payroll tax needs to be paid on it.
The discretionary margin is the budget that an employer may spend tax-free per year on allowances and benefits for employees. As a result, it provides a direct benefit for both parties.
Stimulating employee health
In addition, by offering a gym membership, you stimulate the health and vitality of your employees. Sufficient physical exercise has a positive influence on their physical and mental state. Fit employees are more productive and are absent less often.
A gym membership is therefore an attractive health scheme to motivate your staff to move more. You contribute to their well-being and vitality, while also saving on tax costs.
By offering the membership as a targeted exemption under the work-related costs scheme, you prevent your employees from having to pay tax on it. At the same time, as an employer, you can include this benefit in the discretionary margin of the scheme. In this way, you promote a healthy and active lifestyle among your staff without unexpected costs. A gym membership is a win-win situation for everyone!
Would you like to benefit from the advantages of a gym membership via the employer according to the work-related costs scheme? As consultants from GJ GROEP, we provide HR advice and are happy to advise you on the possibilities and associated conditions for your organisation. We ensure that you make optimal use of these and other attractive employer exemptions. The next step towards a vital and healthy personnel policy? We take it together!
