Golf Membership Benefit in Kind: Everything You Need To Know

Golf isn't just about the game—it's a great way to grow your business, connect with clients, and build solid professional relationships. But can a golf membership be a business expense?

Here's the straightforward answer:

1. Personal vs. Corporate Golf Memberships:

Personal Memberships: It's worth asking, but unfortunately, HMRC doesn't allow this. Personal memberships are strictly personal expenses. You can't put these through the business to save on tax.

Corporate Memberships: This is where it gets interesting. Corporate memberships—paid for by your business and used for business purposes—can sometimes be claimed, possibly allowing for a golf membership tax deduction and offering significant tax benefits.

The right structure on the membership is important, so it's worth discussing this with your club to see what they are willing to work with you on.

Golf Membership – Tax Treatment at a Glance

2. How Does HMRC See Corporate Memberships?

1. Staff Benefit (Including Directors):
   • If you're using the club membership mainly as a perk for yourself or your team, it's classed as a benefit in kind (BIK).
   • Employees (including directors) pay income tax on the value of the benefit.
   • The company pays Class 1A National Insurance but can deduct the cost from corporation tax.
     
     
2. Client Entertainment:
   • If the membership is mostly about entertaining clients, it's considered entertainment. That means you won't get a corporation tax deduction.
     
     
3. Mixed Use (The Realistic Option):
   • Most memberships aren't black and white; they're often mixed.
   • You'll need to split the membership costs between staff use and client entertainment.
   • The staff use portion is treated as above (benefit in kind), and client entertainment remains non-deductible.

3. Key Tip: Promoting Your Business Matters!

Here's the bonus bit—think carefully about how you promote your business. If your golf club membership is genuinely about boosting your company's profile, visibility, or networking, and any personal benefit is incidental, you could have a stronger argument for treating it as a legitimate business expense.

You should always document clearly:

• Meetings with clients at the club
• Networking events attended
• Any promotional activities associated with the club, such as hole sponsoring

A clear business angle can mean you're safely on the right side of HMRC rules.

Common Examples:

Example 1:

A corporate membership for £3,000 includes 150 rounds of golf, club membership benefits such as sponsorship of the 18th hole, and advertising hoardings around the course.

• If the staff use the rounds, they can be seen as trivial benefits if under £50 per round.
• Rounds can also be used as introducer rewards.
• If rounds aren't used but the business is the main sponsor, then there's a strong argument it's purely advertising.
  • Result: Fully tax-deductible for corporation tax.
  • No benefit-in-kind (BIK).

Example 2:

• Corporate membership for £3,000
  • No advertising
  • Used by directors only
    • Not tax-deductible for corporation tax.
    • Directors incur a BIK charge.

Example 3:

• Personal membership, paid by the business
  • Tax deductible but BIK paid by employee
  • Tax Saving of 51% by paying through the business vs personally out of net income

4. Is Golf Membership a Taxable Benefit in Kind?

HMRC treats most company-paid golf memberships as a benefit in kind (BIK) when there is personal use. This applies especially to directors and staff using the club without a clear business justification.

The value of the benefit is typically equal to the cost of the membership, unless only part is for personal benefit. This is then added to the employee’s taxable income and reported on their P11D.

However, if the membership is demonstrably used for business promotion or advertising—and personal use is incidental—BIK charges may not apply. That’s why having a clear split and supporting records is critical.

Golf Membership BIK Tax Impact Example

5. Golf memberships as a Benefit In Kind: business perk or tax pitfall?

Golf memberships can absolutely offer genuine business advantages—whether it's for networking with clients, hosting informal meetings in a relaxed setting, or simply rewarding senior staff with a valued perk. However, from HMRC’s perspective, these benefits can raise red flags if not handled correctly.

To stay compliant, it’s crucial that any golf membership paid for by the company is supported by a clear business case—such as client entertainment, business development, or team-building purposes. You must also ensure all related expenses are recorded properly, and the appropriate tax treatment is applied. If HMRC deems the membership to be a personal benefit with no commercial justification, the result could be an unexpected tax liability for both the company and the employee.

That’s why keeping your paperwork clean and your intentions crystal clear is essential. A well-documented justification and proper accounting can turn what might look like a luxury into a tax-efficient, business-aligned tool.

Approximate fees for implementing this kind of planning typically range between £250 and £500—a small investment when you consider the potential tax exposure if things go wrong. With penalties, interest, and unexpected tax bills in play, it’s always better to get ahead of the curve.

6. How HMRC Views Golf Memberships: Staff Perk vs Business

Golf memberships occupy a grey area in HMRC’s eyes. While they can be legitimate business expenses when used for advertising or client development, they often get flagged when used casually by directors or staff.

The distinction comes down to purpose and evidence. If the club is mainly used for staff leisure, it's a BIK. If it’s used to gain commercial exposure or host clients, and backed by documentation, you’re on firmer ground.

Structuring it right from the start makes all the difference—get advice before paying out.

💬
What Our Experts Say

"Many business owners assume a golf membership is tax-deductible by default—but unless there’s a clear promotional angle or record of client use, HMRC will often treat it as a personal perk and apply full benefit in kind tax rules."

- Beth Hope, Accounts preparer/ customer experience manager at Pulse Accountants

7. Why Choose Pulse Accountants?

At Pulse Accountants, we specialise in guiding business owners and directors through the nuances of benefits in kind, including the increasingly scrutinised area of golf memberships and other lifestyle-related perks.

We don’t just crunch the numbers—we work with you to:

• Assess the commercial viability of your expense claims.

• Create HMRC-ready documentation that supports your position.

• Implement tailored strategies that maximise value while minimising risk.

• Provide peace of mind, knowing you're compliant and tax-efficient.

We’re trusted by business owners who want proactive, practical advice without the jargon. Whether you’re thinking of introducing golf membership as a benefit, or reviewing your current director expenses, we can help you unlock legitimate advantages—without falling foul of HMRC rules.

Approximate fee’s for implementing this kind of advice can range from £250 to £500, which is far less than the tax cost of getting this wrong.

If you would like a chat around implementing this planning and reviewing what expenses can be claimed through the business then please get in touch.

8. Golf Membership BIK FAQs

1. What is a golf membership benefit in kind?

A golf membership benefit in kind (BIK) refers to the taxable value assigned to a golf club membership paid for by a company but used personally by an employee or director. HMRC considers this a personal perk unless it serves a legitimate business purpose.

2. Can I pay for a golf membership through my limited company?

Yes, but the tax treatment depends on how the membership is used. If it’s solely for business advertising or corporate branding, it may be tax-deductible. If it’s for personal use, it becomes a taxable benefit in kind for the individual using it.

3. Is golf membership classed as client entertainment?

Yes. If the golf membership or rounds are used primarily to entertain clients, HMRC considers this client entertainment. These costs are not deductible for corporation tax, though no BIK applies unless there’s personal use.

4. Is a personal golf membership a business expense?

No. A personal membership paid by the company is still a taxable benefit in kind. The business may claim a deduction, but the employee or director will pay income tax and the company pays Class 1A NIC on the benefit.

5. Are corporate golf memberships tax-deductible?

Corporate memberships can be partially tax-deductible if they serve a business function, such as staff use, sponsorship, or business development. Any client entertainment portion is non-deductible, and staff use is usually subject to BIK rules.

6. How does HMRC treat golf memberships?

HMRC treats most golf memberships as non-deductible unless there is clear evidence they are used for advertising or business promotion. If the membership is seen as a personal benefit, it must be reported and taxed as a benefit in kind.

7. Can I avoid a benefit in kind on golf membership?

You may be able to avoid a BIK if the membership is used exclusively for business advertising (e.g., sponsorship or signage), or if rounds are gifted to staff as trivial benefits (under £50 per round). Strong documentation and intent are key.

8. Do I need to report golf membership on a P11D?

Yes, if there is a personal benefit involved. Any use by employees or directors that is not solely for business reasons must be reported on a P11D and included in the calculation of their taxable income.

9. Is there a difference between personal and corporate golf membership for tax?

Yes. Personal golf memberships offer no tax relief and are fully taxable when paid through the business. Corporate memberships, when structured properly and used for genuine business purposes, may offer tax advantages and partial deductibility.

10. What records should I keep for HMRC?

You should keep detailed records including:

• Invoices and contracts for the golf membership

• Logs of who used the membership and when

• Details of client meetings or promotional events

• Proof of any advertising linked to the membership

Clear, accurate documentation supports your tax position and protects against HMRC challenges.