By PaySlipCheck Editorial
· Reviewed by PaySlipCheck Editorial Standards Team
· 14 June 2026
· 5 min read
UK gym membership as a workplace benefit sits in a specific tax bucket. If your employer provides an on-site gym for staff use, the value is exempt from BiK tax (workplace-facility exemption). If your employer pays for external gym membership (e.g. Virgin Active, PureGym), the annual cost is a taxable BiK reported on P11D. Corporate gym schemes and salary sacrifice arrangements typically don't qualify for exemption — the value is taxed. This guide covers each scenario + the tax cost by band.
Verified against 4 official sources · Last reviewed 14 June 2026
2. External gym membership paid by employer (taxable)
£600/year membership at PureGym Platinum ≈ £120 tax/year for higher-rate
£1,200/year premium gym ≈ £480 tax/year for higher-rate
3. Salary sacrifice gym membership (usually taxable + no NI saving)
Reduce gross salary; employer pays gym
Since 2017 (OpRA rules), most gym sacrifice schemes lose the NI saving
Similar tax outcome to direct payment usually
Cost per band — £600 external membership
Band
Annual tax
Monthly tax
Basic (20%)
£120
£10
Higher (40%)
£240
£20
Additional (45%)
£270
£22.50
Corporate gym schemes
Some large employers negotiate group rates with gym chains — you pay a reduced fee. If the employer subsidises the difference, the subsidy is taxable BiK. If the discount is offered at "arm's length" (any customer could access), the group deal is tax-free.
In short
External gym = taxable BiK at your marginal rate. On-site gym = tax-free. Salary sacrifice usually doesn't help post-2017.
Frequently asked questions
Is an on-site gym taxable?
No — the workplace-facility exemption applies to on-site gyms available to all staff.
What about corporate discounts?
Discount arranged at arm's length (any customer could access) is tax-free. Employer subsidy is taxable.
Can I sacrifice salary for gym?
Yes but usually not tax-efficient — Optional Remuneration Arrangements (OpRA) rules apply.
Is a home gym equipment purchase taxable?
If employer buys equipment for you: yes, taxable BiK at market value.
What about wellbeing subsidies?
Some are tax-exempt (annual health check £150 limit). Ask HR about specifics.
What is a P11D — The UK P11D form is submitted annually by employers to HMRC reporting all Benefits in Kind provided to employees. You get a copy showing your total BiK for the tax year. HMRC uses this to adjust your tax code and collect BiK tax.
More on related topics
Childcare vouchers — UK childcare vouchers closed to new joiners in October 2018 — existing users can continue. Tax-Free Childcare replaced it (£2,000/child/year government top-up). This guide covers both + which is better for your situation.
Company car tax — UK company car BiK tax is calculated as list price × emission-band % × your marginal Income Tax rate. Electric cars sit at 3% BiK for 2026/27 (rising 1% per year), making them exceptionally tax-efficient. This guide covers the maths + when a company car beats a car allowance.
Company car vs allowance — UK company car is better than cash car allowance for electric vehicles (3% BiK) at higher-rate tax. Cash allowance is better for petrol/diesel cars at higher-rate. This guide covers the specific numbers.
Salary sacrifice — An arrangement where you give up part of your gross salary in exchange for a non-cash benefit (most commonly pension contributions), reducing your Income Tax and National Insurance.
Sources
All figures on this page are sourced from official UK government publications.
We don't cite secondary commentary or other calculator sites.
All tax figures on this page use the same configuration that powers our
calculators — see our
editorial standards for the review process.
Last reviewed: 14 June 2026.
Next review due 14 December 2026.
Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.