Tax on £1,200 Gym Membership BIK
£25,000 salary · England & Wales · 2025-26
Gym membership BIK tax breakdown — 2025-26
| Gym membership BIK value | £1,200/year |
| Gross salary | £25,000 |
| Total taxable income (salary + gym) | £26,200 |
| Income Tax on gym BIK | £240/year |
| National Insurance on gym BIK | £96/year |
| Total annual tax cost | £336/year |
| Monthly tax cost | £28/month |
| Net benefit value (gym cost minus tax) | £864/year |
Tax on £1,200 employer gym membership on £25,000 — explained
An employer-provided off-site gym membership of £1,200 is a benefit in kind. On a £25,000 salary, your taxable income rises to £26,200. The additional Income Tax on the gym BIK is £240 per year, and employee National Insurance adds £96 — a total annual tax cost of £336 (£28/month).
After the tax cost, you effectively receive £864 of net benefit from the £1,200 membership. Whether the membership is worth accepting depends on whether you would buy a gym membership anyway — if so, the employer-negotiated rate is almost always cheaper than retail, making it financially beneficial even with the BIK tax.
Note: on-site gym facilities available to all employees are exempt from BIK tax. Only employer-subsidised third-party gym memberships attract the BIK charge.
Frequently asked questions
Do I pay tax on a £1,200 employer gym membership on a £25,000 salary?
Yes — employer gym memberships are a taxable benefit in kind. On a £25,000 salary with a £1,200 gym membership, you pay £240 Income Tax and £96 National Insurance on the benefit — £336/year (£28/month).
Is a £1,200 employer gym membership worth it after tax on a £25,000 salary?
After paying £336 in tax, you effectively receive £864 of net benefit from a £1,200 gym membership. Compare this to the retail cost of a gym membership — if your employer negotiates group rates, the membership is usually still worth accepting despite the BIK tax.
How does HMRC tax employer gym memberships?
Off-site gym memberships are taxable as a BIK at the full annual cost (£1,200). This is added to your taxable income, increasing it from £25,000 to £26,200. HMRC adjusts your PAYE tax code to collect the additional tax each month. Your employer reports the BIK on a P11D (or via payrolled benefits) each April.
Are any gym memberships tax-free?
On-site gym facilities that are available to all employees are exempt from BIK tax — no cost to you. However, subsidised off-site gym memberships (e.g., PureGym, DW Fitness) or corporate rates at third-party gyms are taxable at the annual membership value, regardless of the discount your employer negotiates.
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