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Office Gym

Tax Question of the WeekPosted by Tony Hawkins FCCA Tue, October 25, 2016 11:29:26

Question:

My company's business premises has a spare room. Can my company purchase a cross trainer and some other fitness equipment for staff to use?

Answer:

An employer can provide sporting or recreational benefits tax-free to its employees, or any member of their family and household, provided that the benefits are not on an excluded list and the following conditions are all met:

1. The facilities are available generally to the employees of the employer.

2. They are not available to members of the public generally.

3. They are used wholly or mainly by persons who have a right to use them as employees (they do not need to be employed by the same employer).

But!

This exemption does not allow an employer to hand out membership cards for the local gym and sports club, but it does allow an employer to rent or lay on its own facilities or join with other employers to set up facilities for all to use.





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