Food and Subsistence Expenses: When You Can Claim

The Basic Rule: Your Regular Lunch Is Not Claimable

Everyone needs to eat, whether they run a business or not. That's why HMRC treats your day-to-day food and drink as a personal expense. The sandwich you buy near your office, the coffee you pick up on your way to work, the meal deal from the supermarket — none of these are allowable business expenses under normal circumstances.

But there's an important exception: subsistence while travelling on business.

When Food Becomes a Business Expense

You can claim food and drink costs when you're travelling away from your normal place of work for business. This is called subsistence, and it's a well-established category of allowable expense.

The conditions are:

1. You must be away from your normal place of work. If you work from home, that's your base. If you rent an office, that's your base.
2. The journey must be for business purposes. Visiting a client, attending a meeting, working at a temporary site.
3. The food purchase must be a result of the travel. You're buying food because you're away from your base, not because you simply fancy eating out.

Practical Examples

Allowable:

• You work from home in Bristol and travel to London for a client meeting. You buy a sandwich at Paddington station and a coffee during the meeting. Both are subsistence.
• You're a plumber based in Manchester and travel to a customer's home 30 miles away. You grab lunch at a cafe near the job. That's subsistence.
• You attend a two-day conference in Edinburgh. All meals during the trip — breakfast, lunch, dinner — are subsistence.

Not allowable:

• You buy lunch from the shop next to your office every day. That's your regular meal, not subsistence.
• You work from home and walk to the local cafe for lunch. You haven't travelled anywhere on business.
• You take a client for lunch. That's entertainment, not subsistence, and it's not allowable.

What About Home Workers?

If your home is your principal place of business, any business travel away from home makes you eligible for subsistence claims. This is actually advantageous — a home-based sole trader who visits clients regularly can claim food costs on every trip.

However, "working from home and ordering a takeaway" is not subsistence. You need to actually be travelling to or working at a location away from your home.

How Much Can You Claim?

HMRC doesn't set a specific daily limit for subsistence. The costs should be reasonable — you're replacing the meal you would normally have at your base, not treating yourself to fine dining.

Generally accepted as reasonable:

• A sandwich, wrap, or salad for lunch
• A simple restaurant meal for dinner when staying overnight
• Coffee and soft drinks
• Breakfast if it's not included in your hotel stay

Likely to be questioned:

• An expensive restaurant meal when a simpler option was available
• Multiple alcoholic drinks
• Lavish meals that go far beyond what you'd normally eat

Use common sense. If you'd normally spend £5 on lunch at home, spending £8-12 while out on business is reasonable. Spending £50 on a three-course meal for one is harder to justify as subsistence.

Overnight Trips

When your business travel requires an overnight stay, your subsistence claims can be more generous:

• Dinner at the hotel or a local restaurant is allowable
• Breakfast the next morning is allowable
• Reasonable drinks with dinner are allowable (a glass of wine, not a bar tab)
• Room service is allowable (it's still a meal)

Hotel room charges are a separate travel expense — subsistence covers just the food and drink element.

Employees vs Sole Traders

If you employ staff and they travel on business, you can either reimburse their actual costs (with receipts) or pay benchmark rates without requiring receipts. HMRC publishes benchmark subsistence rates:

• Breakfast rate: £5 (when leaving before usual start time)
• One-meal rate: £5 (minimum 5 hours away)
• Two-meal rate: £10 (minimum 10 hours away)
• Late evening meal rate: £15 (finishing after 8pm)

These benchmark rates apply to employees only — sole traders must claim actual costs with receipts.

The "Travelling on Business" Requirement

The crucial test is whether you're genuinely travelling on business, not simply choosing to eat at a different location. HMRC will look at the overall pattern:

• Itinerant workers (electricians, plumbers, consultants who work at different sites daily) can generally claim subsistence on most working days, because they're always travelling to temporary workplaces.
• Fixed-base workers who occasionally travel to meetings can claim on those travel days.
• Workers who choose to eat out near their regular workplace cannot claim just because they bought food outside the office.

Record-Keeping

For every subsistence claim, record:

• The date and location
• The amount spent
• The business reason for the journey
• A receipt or proof of payment

With Accounted, photograph your food receipts and send them to Penny via WhatsApp. She'll check whether you're travelling on business and categorise the expense correctly.

Common Mistakes

Claiming daily lunches. Your regular lunch is not a business expense, no matter how busy you are.

Not claiming when entitled. Many sole traders who travel regularly forget to keep food receipts. Those costs add up.

Confusing subsistence with entertainment. Eating alone while travelling is subsistence (allowable). Eating with a client is entertainment (not allowable).

Excessive claims. Keep meals reasonable. HMRC won't query a £10 lunch but might query a £75 dinner for one.

Never miss a legitimate subsistence claim. Start your free trial with Accounted and let Penny handle the categorisation.