Can I Claim Food and Drink Expenses Through My Business?

One of the most common questions business owners ask is: “Can I put meals, coffees or client dinners through the business?” The answer is… sometimes! HMRC has strict rules on what counts as an allowable business expense, and the rules differ depending on whether you’re self-employed or running a limited company.

At Hiclass Accounting, we like to keep things simple – so here’s a clear breakdown of what you can and can’t claim.

Food and Drink Expenses if You’re Self-Employed

If you’re a sole trader or in a partnership, you can claim food and drink in certain situations:

✅ Allowable

Meals and drinks while travelling for business (not including your usual commute)
Reasonable subsistence when working away from your normal base
Food on overnight business trips

❌ Not Allowable

Your everyday coffees, lunches or snacks – HMRC treats these as normal living costs
Taking clients out for meals or drinks – entertaining is not tax deductible

👉 HMRC guidance: Expenses if you’re self-employed

Food and Drink Expenses for Limited Companies and Directors

If you operate through a limited company, the rules are slightly different:

✅ Allowable

Subsistence costs when travelling for business or working at a temporary workplace
Staff entertaining (such as annual parties or team meals) – up to £150 per employee per year (including directors) as long as the event is open to all staff

❌ Not Allowable

Client entertaining (e.g. meals, drinks, hospitality) – not deductible for corporation tax
Day-to-day food and drink for directors and employees

👉 HMRC guidance: Expenses and benefits: meals for employees and directors

Record-Keeping is Key

To make sure your expense claims are watertight:

Keep receipts for all food and drink expenses you claim
Record the date, location, who you met and the business purpose
If HMRC ever ask, you’ll have clear evidence that the expense was “wholly and exclusively” for business

Common Misunderstandings

🚫 “Can I claim my daily lunch?”
No – everyday meals are personal living costs.

🚫 “Can I claim dinners with clients?”
Not for tax relief. You can still pay through the company, but it won’t reduce your tax bill.

✅ “What about staff events?”
Yes – company parties and meals up to £150 per head are allowable (a great way to treat your team!).

Need Help Navigating HMRC Rules?

The rules around food and drink expenses can be confusing – and it’s easy to get caught out. At Hiclass Accounting, we help sole traders and directors keep their expense claims compliant while making sure they don’t miss out on genuine tax savings.

📞 Get in touch today to see how we can help you keep your business tax-efficient.

Frequently Asked Questions about Food and Drink Expenses

Can I claim lunch if I work from home?
No – everyday meals at home are treated as personal living costs and are not allowable for tax purposes.

Can I claim coffee or lunch with a client?
You can pay for client entertaining through your business, but it is not tax deductible for corporation tax or income tax. You won’t get tax relief on these costs.

Can I claim food and drink if I travel for work?
Yes – reasonable meals and subsistence costs are allowable if you are travelling for business purposes, excluding your normal commute. This applies to both sole traders and limited company directors.

Are staff parties tax deductible?
Yes – staff entertaining is allowable if it’s an annual event (such as a Christmas party), open to all employees, and costs no more than £150 per person per year.

Can I claim food and drink on an overnight business trip?
Yes – whether self-employed or a director, you can claim reasonable food and drink costs as subsistence when you’re working away overnight.

What happens if I claim food and drink incorrectly?
HMRC may disallow the expense, increase your taxable profit, and charge penalties if they believe you’ve claimed incorrectly. Good record-keeping is essential.