Personal Training as a Workplace Benefit

Some employers choose to include health and wellbeing services as part of their employee benefits package. In certain circumstances, services like personal training may be structured as what HMRC refers to as a “benefit in kind” (BIK).

A benefit in kind is a non-cash benefit provided by an employer. Common examples include company vehicles, private medical insurance, or other services funded by the business on behalf of employees. The value of the benefit is reported through payroll or annual HMRC reporting, and the employee typically pays income tax on the value of the benefit they receive.

Where wellbeing services are included in a benefits package, the employer normally pays the provider directly and manages the internal reporting associated with the benefit. Employees then receive the service as part of their wider compensation package rather than paying for it personally.

Arrangements like this are sometimes used by companies as part of a broader employee wellbeing strategy. Structured health support can help organisations demonstrate a commitment to staff wellbeing, while giving employees access to services that support the long-term health, mobility, and physical resilience of their team members.

Because benefit structures vary between organisations, there is no single model that applies to every company. The way any benefit is implemented depends on internal HR policies, payroll processes, and the organisation’s existing benefits framework.

Employee Next Steps

If you’re an employee who is interested in the possibility of personal training being supported through work, the first step is usually to speak with HR, People & Culture, or your line manager. They can confirm whether your organisation already offers health allowances or other wellbeing benefits that might apply.

Of course, if they’re not 100% sure how it would work or require any further information from us, they’re welcome to get in touch on hello@fitnesslab.fit – we’re always happy to share our knowledge.

Employer/Decision Maker Next Steps

If you are responsible for employee benefits or wellbeing programmes within your organisation, you may simply be exploring whether personal training could sit alongside other health-focused initiatives.

Fitness Lab regularly works with individuals and organisations on strength and health programmes, and we are happy to discuss how personal training can fit within different workplace wellbeing structures. If you’d like to understand how this type of arrangement could potentially work in practice, feel free to get in touch – either directly at hello@fitnesslab.fit or using the form on this page, and we can share more information about how it can work.

Illustrative Example: Paying Personally vs Employer-Funded Training

The example below illustrates how the cost of personal training might differ if paid personally by an employee compared with being funded by an employer and treated as a benefit in kind.

The figures are based on a block of 10 sessions priced at £950 (including VAT) and assume a higher-rate taxpayer and a company paying corporation tax at 25%. The example is purely illustrative.

Scenario: Block of 10 personal training sessions
Price: £950 including VAT

Option 1 – Employee Pays Personally

The employee purchases the sessions using after-tax income.

Employee cost: £950
Employer cost: £0

Option 2 – Employer Funds the Training

The employer pays the training provider directly and treats the cost as a taxable benefit.

Step 1 – VAT recovery (where applicable)

If the employer is VAT registered and able to recover VAT, the VAT element can be reclaimed.

Total price: £950
VAT reclaimed: £158.33
Net cost to employer: £791.67

Step 2 – Employee tax on the benefit

If the training is treated as a taxable benefit in kind, the employee pays income tax on the value of the benefit.

For a 40% taxpayer:

Employee tax cost: £316.67

Step 3 – Employer tax position

The employer may usually deduct the training cost as a business expense.

Corporation tax relief on £791.67 (25%): £197.92

Employer’s Class 1A National Insurance may also apply to the benefit.

Employer NIC (15%): £118.75

This NIC cost is also generally tax deductible.

Corporation tax relief on NIC: £29.69

Illustrative outcome

Employee tax cost: £316.67
Employer net cost after VAT recovery and tax relief: £682.81

In this illustration, the training is funded by the employer and treated as a taxable benefit, meaning the employee pays income tax on the value received while the employer receives VAT recovery and tax relief on the cost.

Important note

This example is provided for illustration only and assumes 20% VAT, 25% corporation tax, 40% personal tax and 15% employer’s National Insurance. Actual tax treatment will depend on individual circumstances, including the employer’s VAT recovery position, corporation tax rate, the employee’s tax rate, and whether the training qualifies as tax-exempt work-related training. Tax rules and rates may also change. Employers and employees should seek professional advice before relying on any example.