Can You Claim Meals With Clients on Tax?

Alright, let’s clear something up, because this one trips up a lot 
of business owners. 

You shout a client lunch.
You talk shop.
The bill comes.
And you think: “Beauty. That’s a tax deduction.”

 Sorry to be the bearer of bad news — but most of the time, it’s not.

The Simple Rule

 If you’re buying food or drinks for a client, the tax office says:"“Nice try — that’s entertainment.” And entertainment, my friend, is not deductible.

 Doesn’t matter if:

• You talked business the whole time
• You were sealing a deal
• The lunch was “necessary” to keep the relationship alive
• You kept it modest (no oysters or champagne)

 If it looks like a social meal, smells like a social meal, and tastes like a social meal… the tax office calls it entertainment. “But I Was Working!” Yep. Still doesn’t count.

 The tax rules don’t care how productive the conversation was. Once you’re feeding a client in a café, restaurant, or bar, it’s generally treated as hospitality, not a business necessity.

 So:

Lunch with a client , coffee meeting at a café , dinner to celebrate signing a contract . All non-deductible. 

When meals can be claimed 

You’re Travelling for Business

If you’re away overnight for work, meals are usually deductible. So if you’re on the road, staying in a hotel, and grabbing dinner — that’s different. The meal is about sustenance while working, not entertainment.
Even better? This applies whether or not a client joins you — as long as the travel itself is legitimate.

Training, Seminars, or Conferences

If food is provided as part of a genuine training or professional development event, it may be deductible.
The key word here is genuine. If the main purpose is learning, not socialising, you’re on safer ground.

The Bottom Line

 Most meals with clients are not tax deductible. No matter how important the relationship is. No matter how good the business chat was. Think of it this way: If you’re feeding a client, you’re entertaining — and the tax office isn’t picking up the tab.

Now the Important Bit: Meals With Employees (Different Rules Altogether)

Here’s where things change — and this is where business owners can legitimately claim deductions if it’s done properly. If you’re providing simple food or drinks to employees as part of running the business, these are generally deductible.
Think:

• Tea, coffee, milk, biscuits 
• Sandwiches or light meals during work 
• Pizza during a late night or overtime 
• Lunch provided during an internal meeting or training session (which may be at outside the work premises) 

 Why does this work? Because it’s: Not social entertainment, Not lavish, Directly connected to work

Staff Meals vs Entertainment

 Here’s the simple test:

Is the food about doing the job, or having a good time?

• Working lunch in the office ✅
• Formal training day catering  ✅
• Friday afternoon beers ❌ (entertainment)
• Christmas party ❌ (entertainment)

What About Food on Your Own Business Premises?

 This is where people assume everything is deductible — and that’s not quite right.

 In-House Catering for Employees ✅

 If you bring food into your office, workshop, or site for staff, it’s often deductible if:

• It’s consumed on business premises
• It’s provided to employees (not clients)
• It’s reasonable and work-related

Examples:

• Sandwich platters for a team meeting
• Catering for staff training
• Lunch provided during overtime
• Morning tea for staff

This is generally treated as a staff cost, not entertainment.

 In-House Catering for Clients ❌

 Now here’s the trap. If clients come to your office and you provide catering for them, the tax office usually still calls it entertainment.

So:

• Boardroom lunch with clients ❌
• Catered client presentation ❌
• Food provided mainly to impress or host ❌

 Even though it’s “in-house”, the purpose matters more than the location. If the food is there because clients are there, it’s still entertainment.

The bottom line. Keep notes. Be reasonable. Don’t push it and if you're not sure, ask us!