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