Gym membership

[eek]

The thing is that you have to look at the model:-

Gym membership say

Employer pays their NI on the £1000

You pay tax on the benefit value £1000

However you don't pay employee NI contribution on that £1000.

Now think about how your company pays you:-

very low salary to avoid hitting the NI limits
vast majority of income taken as dividends.

For an employee paid a reasonable salary taking benefits saves money.

For a contractor it costs you money as you'll have to stump up the employer NI side of things. And thats before the fact you'll probably get a better deal by shopping around.

[psychocandy]

This was my understanding in the past, but recently in the permie world that has changed, and I saw several companies taking advantage of that, so instead of given an employee a basic salary + benefits, they have changed the model where all the benefits are taken out of the employee's salary before its taxed, hence the employees pays less tax as their salary would appear a lot less.

Yes I have an accountant, and will discuss it with him... but this is an Accounting Forum... if we are not allowed to ask accounting questions on it, then why bother have one?

But if employer gives you £1000 salary or £800 salary plus £200 worth of benefits, its still £1000 you will get taxed on.

[wurzel]

You don't need a fancy gym or expensive gear to be as fit as me

Solitary Fitness

[Jessica@WhiteFieldTax]

Eek has covered the salient point above - although the same tax code applies to a outside IR35 contractor and a permie/their employer, the differing circumstances of a contractor and the inherent flexibility in the business model means that the tricks and benefits used in peridom don't translate across.

Keep it simple...

Oh, and as well as gyms, same goes for bicycles and cycle,to work schemes... Lovely in theory, but not necessary....

[d000hg]

Not that it answers your questions, but this might help you avoid some silly £70/month gym:

Cheap Gyms: Free passes & membership from £10/mth

Hopefully your contract in a stupidly expensive area pays stupidly well

[SandyD]

Not that it answers your questions, but this might help you avoid some silly £70/month gym:

Cheap Gyms: Free passes & membership from £10/mth

Thanks will have a look

Hopefully your contract in a stupidly expensive area pays stupidly well

Nope had to reduce my rate a lot actually

[Jessica@WhiteFieldTax]

£70 a month? Gosh.

One of the nicest things about WFH is converting garage to gym, and being able to exercise in private any time of day or night. And better quality equipment than the budget stuff the council put into our nearest public gym.

** smug feeling **