Limited company guide
Short answer
Your limited company can pay for many costs, but the tax result differs. Business costs can be deductible without personal tax. Perks may be taxable benefits; personal bills usually count as salary or a director's loan.
Can your limited company pay for your gym, health insurance, dental bills, holiday or personal tax bill? The 2026/27 UK tax treatment for directors, item by item.
Last updated 9 November 2026. Official references are listed below.
| Item | Usual treatment |
|---|---|
| Gym membership | Benefit in kind (P11D + Class 1A). An in-house gym open to all staff can be exempt |
| Private medical or dental insurance | Benefit in kind, reported on P11D |
| Dental treatment (paying the dentist directly) | Taxable benefit. Class 1 NIC if the bill is in your name |
| One health screening or medical check-up a year | Exempt |
| Eye test and glasses for screen work | Exempt where needed for display screen use |
| Mobile phone (one per employee, contract in company name) | Exempt |
| Trivial benefits | Exempt up to £50 each, with an annual cap of £300 for directors of close companies |
| Annual staff party | Exempt up to £150 a head if open to all staff |
| Relevant life cover | Not a benefit in kind if the policy meets the conditions |
| Holiday, mortgage, rent, student loan | Personal: salary or director's loan |
| Your personal Self Assessment bill | Personal: director's loan or salary |
For gym membership, if the contract is in your own name and the company pays the bill, it is treated as pay with Class 1 NIC through payroll; if the contract is in the company's name, it is a P11D benefit with Class 1A NIC. From April 2027, medical benefits, company cars and vans must be payrolled; most other benefits follow in April 2028. The 2026/27 P11D deadline is 6 July 2027.
It can pay, but this remains your personal bill. Record it as salary or a director's loan. If overdrawn nine months and one day after year end, section 455 tax is 35.75%, refundable after repayment. Loans over £10,000 can also create a taxable benefit.
No. Rent or mortgage is a personal cost. If you regularly work from home under an arrangement with your company, the company can pay £6 a week tax-free or the proven extra household costs. Some directors have the company pay rent for using a room under a formal agreement, but that rent is taxable income for you.
Sometimes: paying from pre-tax profits can cost less than taking dividends. Compare your tax band and company profits.
We check what your company pays for, file P11Ds or payroll benefits, and plan your salary, dividends and perks together. Get a quote or book a call.
Primary references
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Frequently asked
Yes, usually with tax and NIC. An in-house gym open to all staff can be exempt.
No, it is normally a taxable benefit. Report it on P11D for 2026/27; mandatory payrolling starts in April 2027.
HMRC can charge unpaid tax, NIC and interest. Penalties depend on the facts and applicable rules.
A personal holiday is not a business expense. Record it as salary or a director's loan; genuine business travel follows separate rules.
Yes, but paying the dentist directly is a taxable benefit. Class 1 NIC applies if the bill is in your name.
It can make the payment, but your mortgage is personal. Record it as salary or a director's loan, not a business expense.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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