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Can You Claim Food & Drink Through Your Limited Company?

Wondering if your daily coffee or working lunch can be claimed as a business expense?


Here’s a quick guide to what’s allowed — and what’s not — when it comes to food and drink expenses in your Limited Company.

🚫 What You CANNOT Claim

Unfortunately, not all food and drink count as allowable business expenses. These are not claimable:

  • Coffee or breakfast on your regular commute (e.g., from home to your usual office)

  • 🍫 Snacks during travel between regular work sites (like from one shop or office to another)

  • 🍽️ Meals out for personal enjoyment (e.g., dinner with family or friends)

  • 🪑 Food or drink while working in a coffee shop (even if you’re working hard!)

Rule of thumb: If the meal is part of your normal routine or not strictly business-related — it’s not deductible.

✅ What You CAN Claim

You can claim food and drink costs if they are directly tied to business travel or temporary work situations. Examples include:

  • 🛣️ Meals on the way to a temporary workplace
    (e.g., you're filling in at a different branch that's not your normal location)

  • 🚆 Food during business-related travel
    (e.g., attending a training session in another city)

💡 Tip: Always keep the receipt — especially if you plan to reclaim the VAT!

🧑‍💼 For Employers: Staff Perks & Allowable Expenses

If your Limited Company employs staff (even just one or two), here’s what else you can claim:

  • 🥤 Snacks and drinks at the workplace — Allowed!

  • 🧳 Staff food & drink during work travel — Also allowed!

  • 🎉 Annual Party Allowance: £150 per person

    • Must be open to all employees

    • Can be split across multiple events

    • If the cost goes over £150 per head, the whole amount becomes taxable — so watch that budget!

💡 Bonus: Use Trivial Benefits Wisely

Want to treat your team (or yourself as a director) without triggering tax or reporting?

  • 🎁 You can give small, non-cash gifts (like a bottle of wine, bouquet, or gift card under £50) using the Trivial Benefits allowance.

  • These are tax-free and don’t need to be declared, as long as the rules are followed.

📌 Final Thoughts

While not every coffee is claimable, there are still plenty of ways to make the most of food and drink expenses — legally and efficiently — through your Limited Company. Just remember:

  • ✔️ Keep receipts

  • ❌ Don’t claim personal or routine costs

  • 💬 If in doubt - Ask ! 

Photo by Fahmi Fakhrudin on Unsplash



 

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