Employee health and fitness – a benefit worth investing in

As a responsible employer, and in the interests of staff health and wellbeing, giving them access to gym facilities is a great option. But, have you thought of actually putting a gym in the workplace?

You can provide workplace gym facilities and won’t have to report anything to HMRC or pay tax and national insurance if the following conditions are satisfied.

  • The gym facilities must be available for use by all of your employees (not just selected employees).
  • They must not be available to the general public.
  • They must be used mainly by employees, former employees or members of employees’ families and households.
  • They must not be located in a private home, holiday or other overnight accommodation.


Subject to the above, your company can purchase gym equipment and install it in the workplace, claiming back the VAT on the cost and then getting 100% corporation tax relief on the net cost. Do you have space at your workplace to do this?

If the above isn’t practical for you, gym memberships can also be a great way to improve employee morale and increase job satisfaction. By offering this benefit, you show that you care about the overall wellbeing of your employees and are willing to invest in their health. This can lead to increased loyalty and commitment to the company. whilst the cost of the gym membership paid by your company will be classed as a taxable benefit in kind for the employee, they will still be much better off if you, the employer, provide this for them.

Take a look at this link for employers looking to provide gym facilities for staff.


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David Elliott

Chartered Accountant, BSC, FCA

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