Are business meetings tax deductible?

Business meetings can be tax deductible in the UK, but it depends on the nature of the meeting and the associated expenses.

Meetings that are directly related to the operations of your business, such as planning sessions, team discussions, or strategy meetings, are generally considered allowable expenses. Costs like venue hire, travel, and staff meals incurred as part of the meeting may also qualify as tax-deductible.

However, meetings with clients, such as those involving entertainment or hospitality, are typically not deductible for Corporation Tax purposes. HMRC draws a distinction between business-related costs and client entertainment, the latter being non-deductible.

Are meals for business meetings tax deductible?

Meals for business meetings can be tax deductible in the UK if they serve a genuine business purpose. External meetings with clients, suppliers, or other business contacts may qualify, provided the primary purpose of the meeting is business-related. However, if the meeting includes significant entertainment aspects, HMRC may disallow the deduction.

Providing light refreshments (e.g., tea, coffee, biscuits) during a working meeting is usually acceptable. However, regularly providing elaborate meals could be seen as entertainment and therefore not deductible.

Is coffee a business expense?

The tax deductibility of coffee as a business expense in the UK is nuanced and depends on the specific circumstances.

Tax relief may be available in respect to expenditure on subsistence or staff entertaining (subject to satisfying certain criteria), but tax relief on business entertaining is not available. The challenge with coffee is that it often has a “dual purpose” – both personal and business. 

If you’re away from your usual place of work on a business trip, coffee purchased during that trip may be considered a legitimate business expense. This is because it’s considered an expense incurred specifically due to your business activities.

Summary

In summary, while the cost of entertaining clients is generally not tax-deductible, expenses related to genuine business meetings with staff and the cost of meeting room hire can often be claimed.

To be tax-deductible, expenses must be incurred “wholly and exclusively” for business purposes. This means the primary reason for the meeting and its associated costs must be directly related to business activities.

It is always best to keep very good records of the business purpose meetings.

Understanding what expenses are tax deductible for business meetings can be tricky, especially when it comes to covering meeting costs or even buying coffee for clients.

To navigate these nuances and ensure you’re compliant with HMRC regulations, having a knowledgeable accountant by your side is invaluable. They can help identify allowable expenses, maximise your deductions, and keep your financial records in order, leaving you free to focus on growing your business.

Contact Perrys Chartered Accountants for more advice.