Tax on £3,000 Gym Membership BIK
£35,000 salary · England & Wales · 2025-26
Gym membership BIK tax breakdown — 2025-26
| Gym membership BIK value | £3,000/year |
| Gross salary | £35,000 |
| Total taxable income (salary + gym) | £38,000 |
| Income Tax on gym BIK | £600/year |
| National Insurance on gym BIK | £240/year |
| Total annual tax cost | £840/year |
| Monthly tax cost | £70/month |
| Net benefit value (gym cost minus tax) | £2,160/year |
Tax on £3,000 employer gym membership on £35,000 — explained
An employer-provided off-site gym membership of £3,000 is a benefit in kind. On a £35,000 salary, your taxable income rises to £38,000. The additional Income Tax on the gym BIK is £600 per year, and employee National Insurance adds £240 — a total annual tax cost of £840 (£70/month).
After the tax cost, you effectively receive £2,160 of net benefit from the £3,000 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 £3,000 employer gym membership on a £35,000 salary?
Yes — employer gym memberships are a taxable benefit in kind. On a £35,000 salary with a £3,000 gym membership, you pay £600 Income Tax and £240 National Insurance on the benefit — £840/year (£70/month).
Is a £3,000 employer gym membership worth it after tax on a £35,000 salary?
After paying £840 in tax, you effectively receive £2,160 of net benefit from a £3,000 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 (£3,000). This is added to your taxable income, increasing it from £35,000 to £38,000. 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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