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Director and subsistence

Director and subsistence

Company has a short term contract with a customer and the company director works on site providing consultancy services.

During the contract the director used the company debit card to pay for coffee and lunches at the on site coffee shop. The question is will these be tax decutible as far as the company is concerned as general subsistence?

Any other issues/thoughts?



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03rd Jul 2012 11:36


It's certainly allowable from the company's perspective.

There's a potential benefit in kind (as with any expenditure using a credit token, which includes a debit card). It should be fully relieved under Ss.337-338 & 326 ITEPA 2003. See EIM31815.

The only question mark is necessity, which might hang over the coffee purchases, but I imagine that they're sufficiently trivial in amount for it not to be a point that HMRC would pursue.

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