Subsistence Expenses Explained 🍴 What UK Small Businesses Can Claim
- John Massey
- Dec 16
- 3 min read
What Food & Drink Can Your Business Claim?
Subsistence expenses are one of the most misunderstood areas of UK tax — and a common trigger for HMRC challenges.
This guide explains when food and drink can be claimed, when they cannot, and how the rules apply across limited companies, sole traders and partnerships.
The General Rule (Start Here)
As a rule of thumb: ⛔ Food, drink and accommodation are not allowable business expenses.
Why? Because everyone must eat and sleep to live — HMRC treats these as private living costs, even if you’re running a business.
However, there are important exceptions.
When Subsistence Is Allowable ✅
Your business may claim the cost of modest subsistence (food on-the-go) only where it arises wholly and exclusively due to business travel.
HMRC accepts subsistence claims in the following situations:
1️⃣ Itinerant Businesses (Travelling Work)
✅ Allowable if your business:
Regularly travels to multiple locations
Spends short periods at each site
Has no single permanent workplace
Common examples:
Builders and tradespeople
Mobile engineers
Mobile hairdressers
Long-distance lorry drivers
Taxi drivers, delivery-drivers and couriers
Consultants visiting different client sites
In these cases, modest food and drink purchased while travelling between jobs can be claimed.
2️⃣ Occasional Business Travel Outside Your Normal Pattern
✅ Also allowable where a normally site-based or office-based business person:
Makes an occasional business journey outside their usual workplace
Consumes a reasonable meal while travelling
Examples:
Visiting a supplier or customer
Attending a meeting away from your normal office
Travelling to a temporary work location
The key word here is occasional. Daily lunches near your usual office or site do not qualify.
What Is Not Subsistence ⛔
The following are not allowable, even if you’re “working”:
Daily lunch near your normal workplace
Coffee or snacks bought during a normal workday
Meals eaten while working late at your usual site
Food purchased during ordinary commuting
These remain personal expenses, not business costs.
VAT Treatment on Subsistence 🍽️
➡️ Input VAT can be reclaimed as long as the cost is:
Allowable for tax and
Supported by a valid VAT receipt
This follows VAT Notice 700, section 12, which aligns VAT recovery with the underlying tax treatment of the expense.
Record-Keeping Matters 📂
To support a subsistence claim, keep:
🧾 VAT receipts
📍 Evidence of the business journey
📝 Notes explaining why the travel was outside your normal pattern
Poor records are one of the most common reasons HMRC disallows subsistence claims.
Key Takeaways 📌
🍴 Food and drink are usually private expenses — subsistence is the exception, not the rule.
💼 Subsistence is allowable only when it arises because of business travel.
🧭 Itinerant businesses and occasional journeys outside normal work patterns can qualify.
⛔ Daily lunches near your usual workplace are never allowable.
🧾 If the subsistence cost is allowable for tax, VAT is usually reclaimable with a valid receipt.
If you’re unsure whether your situation qualifies, get advice before claiming — subsistence errors are easy for HMRC to spot and expensive to unwind later.
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