I have a client -husband and wife who work from home but spend a lot of time in hotels,meeting clients and working from hotel lobbies -they incur lunch and coffee costs and want to take a tax deduction for it -I am inclined to put a portion through the directors loan and a small portion £5 per head through the accounts .
Any views ? I find home based clients have no choice but to meet in coffee shops a lot of the time and so incur coffee costs that really could be seen as a room hire costs!!
Thanks
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I too am sure that staff at HMRC get more than £5 per day for subsistence. But this is business entertaining and therefore disallowable.
Location location location
IMHO before launching down the subsistence route you need to have a really careful look at the location of said meetings as against the "normal" place of business operation.
I suspect it goes without saying that the cost of the other party being met (if not a member of staff) is disallowed as entertainment.
Not very keen on the idea that a coffee and a bacon roll is an imputed room rental, be interested to hear the opinion of others.
It is what it is
You can't call it room hire when it's not room hire!
If you pay to hire a room for the meeting then this will be allowable.
I cannot see how the costs of coffee etc. is anything other than entertaining.
They can claim coffees/lunch as normal travel and subsistence but if they are hosting and pay for coffees then this is business entertaining.