If you're self-employed and curious about which food expenses you can claim on your tax return, this guide will walk you through the basics.

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Claiming food expenses can be a tricky area when it comes to taxes, but under certain conditions, you can deduct your meals as a business expense.

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Unfortunately, those conditions are quite specific and come with strict criteria. However, if you meet the requirements, you can deduct your food costs on your tax return.

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In this guide, you'll learn:

• What types of food expenses you can claim

• The amount you can claim

• Whether alcohol can be included

• How to include these expenses on your self-assessment tax return

This guide is tailored for sole traders and individuals with side businesses. The rules differ if you operate a Limited Company.

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Important Reminder: While I am an accountant, I'm not your accountant. The information provided here is legally accurate but intended for general guidance only. Since everyone's situation is unique, it's crucial to use your own judgment when applying this advice to your specific circumstances. If you're unsure or have questions, please consult a qualified professional, as errors could result in penalties.

What Food Expenses Can You Claim When You’re Self-Employed?

Claiming food expenses can help reduce your tax bill, but the rules about what you can and cannot claim as a business expense are quite strict.

This is because HMRC wants to ensure that the expenses are entirely business-related. To prevent individuals from claiming personal meal expenses, the rules are stringent.

The Rules

 

According to HMRC:

• You can claim the cost of food and drink purchased while traveling outside your normal work routine or daily commute as an allowable business expense.

• Food and drink expenses for personal reasons, such as choosing to eat away from your work base, are not allowable business expenses.

• Costs for food and drink, along with accommodation, can be claimed if an overnight stay is necessary.

• If your job requires you to stay at your base of operations, food, drink, and accommodation costs are not allowable expenses.

• If your work involves traveling to various locations regularly (itinerant work), the costs are not allowable expenses. These rules apply specifically to travel and subsistence. Different rules apply for client entertainment.

 

Can You Claim a Fixed Meal Allowance If You’re Self-Employed?

HMRC does not provide a fixed meal allowance for self-employed individuals. Instead, you need to claim the actual cost of your meals and retain your receipts.

There are flat rates for other expenses, such as home office use and mileage, known as simplified expenses. However, these do not apply to food and drink.

 

Examples

• A self-employed bookkeeper typically works from a rented office. When traveling to see a potential new client, she buys lunch on the road. This lunch can be claimed as an allowable business expense because the trip is outside her regular commute.

• A self-employed web developer works at a client’s office two days a week. The costs of food and drink for this regular trip are not allowable expenses.

• A self-employed hairdresser stays overnight in a hotel for a client’s wedding. Both the food and accommodation costs are allowable business expenses.

• A self-employed lorry driver spends the night in their cab instead of a hotel. The cost of food and drink in this scenario is an allowable business expense.

• A sole trader who typically works from home decides to work from a coffee shop for a day, purchasing food and drinks. These costs are not allowable business expenses because they are not necessary for the trade.

• A self-employed gardener who visits multiple clients cannot claim food and drink expenses because the job's itinerant nature makes them non-allowable expenses.

 

What Amount Can You Claim?

Any claim for allowable food or drink as a business expense must be "reasonable." While HMRC doesn't provide a clear definition of "reasonable," it's generally understood that

 

what you claim should be modest.

For instance, a simple meal deal would be considered reasonable, while a lavish meal with expensive drinks might not be accepted by HMRC.

As with any other business expense, it's essential to keep receipts to substantiate your claims on your self-assessment tax return.

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Can Alcohol Be Claimed as a Business Expense?

Alcohol can be claimed as a business expense under similar rules, but it must be purchased with a meal. The amount must also be reasonable—a glass of wine or beer is acceptable, but a full night of drinks may not be.

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How to Claim Food Expenses on Your Tax Return

To claim food expenses, include the costs in the self-employment section of your tax return. If your business turnover is less than £85,000 for 2023-24, you can fill out the simplified version, where you only need to enter your total expenses, including food and drink.

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If your business turnover exceeds £85,000, you'll need to provide a breakdown of your expenses, with food expenses included under "car, van, and travel expenses."

 

Final Thoughts

Claiming food expenses on your tax return can be challenging. Generally, you can only claim food costs when working away from your usual location, typically involving significant travel or an overnight stay. Always back up your claims with receipts, as they are necessary for verification in case of an HMRC investigation.

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