Can I claim a business lunch with a client as an allowable expense in the UK?
No — HMRC does not allow deductions for business entertaining, which includes meals, drinks, or hospitality provided to clients, customers, or prospects. This is a common misconception. Even if the lunch has a clear business purpose (signing a contract, pitching a new client, or maintaining a business relationship), the cost of entertaining someone else is explicitly excluded by HMRC under the 'business entertaining' rules. However, your own subsistence (your own meal) during a business trip or when working away from your base can be claimed — but not the portion paid for your client. The rule is: you can claim for yourself when working away, but never for what you buy for others as hospitality.
- Business entertaining is explicitly not allowable — HMRC rules this out entirely
- This includes client lunches, dinners, drinks, and any hospitality for external people
- Your own meal/subsistence when working away from base can still be claimed
- Split receipts: you can claim your portion but not the client's portion
- No deduction available even if the lunch is purely for business reasons