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a) Dill had the use of Herb plc’s company gym which is only open to
employees of the company — exempt under “recreational and sports facilities” for employment income.b) Herb plc paid a health club membership fee of £990 for the benefit of Dill — is taxable as per Q115 (Dill) BPP kit
Shouldn’t this be exempt for the same reason as a) ?a) Exempt benefit as it is the company’s own gym – and facilities are ONLY available to employees
b) Amount paid to a separate health club and therefore benefit follows normal rule of fully taxable on cost to employer of service paid for by employer and supplied to employeeA further possibility would be where the employee works for the health club itself and is provided with free use of the facilities – where the benefit assessable would be just the marginal cost to the employer of providing the benefit – NOT the normal membership fee
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