I understand it’s allowable even for Directors. Are there consequences?
Your Company could pay the membership – and it would obtain tax relief, and reduce your Corporation Tax bill. But, it would be a taxable Benefit in Kind (BIK) for you and your staff. The BIK would have to be divided in a fair way – perhaps the number of times anyone uses the club? You would all have to pay extra income tax – and your Company would have to pay extra National Insurance.
If you take customers to the Club, it could reduce the taxable BIK – because some of the cost would count as entertainment (which is itself not tax deductible). Basically, either way there are tax consequences.