Claiming food as a business expense

Understanding HMRC's guidelines on the deductibility of meals during the day and while travelling for business purposes is key to staying compliant and avoiding costly mistakes. These rules clarify when meals and subsistence costs can be claimed as a business expense. While the rules aren’t new, many business owners get them wrong, so it’s important to revisit them to ensure you’re applying them correctly.​

In short, you can claim food expenses if the meal is directly related to the business or trade. That means the meal must be consumed while you are travelling for business or staying away from home overnight for work-related reasons. ​

Put another way, if the meal is consumed outside of your everyday working routine, the cost may be deductible.​

If you had to travel to a new location to visit a customer or supplier, you could claim back the expense of the lunch you bought while you were travelling. If you order Deliveroo to your office, you cannot claim back the expense.​

HMRC also doesn’t allow claims for meals that are expensive or extravagant. While there’s no definition on what they deem reasonable, they have said that ‘an elaborate menu and fine wines’ would class as meals on an unreasonable scale.​

If you’re a trader such as an electrician, builder, or plumber who travels to different sites each day as part of your normal work pattern, you would not be able to claim the cost of lunch. Since this kind of travel is deemed to be part of your regular everyday working routine, HMRC does not see it as qualifying business travel.​

To claim a deduction for food expenses, you must meet the following criteria:​

You can claim any business expense that’s linked to the production of your business income.​​

HMRC could ask for proof that your trip was for business purposes, so you must keep a record of the following and provide it to your accountant:​​

As with any business expense, you should retain copies of invoices or tickets.​​

If a trip is partly for pleasure, you can only claim the relevant percentage or direct costs of the business part of the trip. For example, if your Portugal trip included a week on the beach and a week of client meetings in Lisbon, you can claim all of the Lisbon expenses and half of the travel costs (like the airfare).​​

You can claim back VAT in line with the rules above. If the expense is treated as tax deductible on the basis it's a business expense, you can claim back the VAT paid on the purchase. ​

If you provide all employees free or subsidised meals of a reasonable value at a workplace canteen, or vouchers that cover the cost of buying these meals, you do not have to report anything to HMRC or pay tax and National Insurance.​

The same applies if you reimburse your staff or pay for meals that are deductible under the rules outlined earlier in the article.​

However, if you offer these meals or vouchers under salary sacrifice or flexible remuneration arrangements these will be deemed a taxable benefit and need reporting to HMRC.​

If you're having to buy a meal in the course of business because you’re operating outside of your normal routine or location, you may be able to claim the meal as a tax deductible expense. If you’re unsure, it’s always best to ask your accountant to ensure you don’t end up claiming for something you’re not allowed to.​

Not working with an accountant or looking to switch? Book a call to discuss your business accounting requirements.​