Business / work lunch - claiming as an expense

JohnCleary

I'm a sole trader.

In the past 2 months I have found myself closing in on a deal over lunch. Of course, I end up paying :pac:

It's a legit business lunch (to gain business) and no alcohol involved.

Can this be claimed as an expense? Revenue seem to say no: http://www.revenue.ie/en/business/running/allowable-expenses.html

But thought i'd ask as this isin't 'entertainment' (as mentioned on revenue website), but rather to seal a deal.

I've asked my accountant but he's not in the country right now so thought i'd ask on here to get an indication. Many thanks.

viztopia

It would probably be claimed as entertainment expense. Entertainment of staff is tax deductible but entertainment of clients isn't.

dbran

Hi

Payment of staff may be tax deductable but in certain circumstances there may be BIK issues for your staff which you will have to then pay on their behalf. Mis-lableing of expenses is another issue that the revenue may take a dim view of if uncovered as it shows concealment and that you are potentially a lier which is never a good thing if you come up against an inspector who is not benign towards you.

You ask your accountant and tax advisers for tax advise and pay them accordingly. Especially if it may leave you in an exposed position where you will be asked questions you wont be able to easily answer at a revenue audit. Never an online forum.

Dbran

OttoPilot

It's certainly hard to argue your own lunch cost as a genuine business cost, as you would have had to eat regardless if you were working or not! I doubt revenue would take into account the difference in expense between a typical lunch and a business lunch.

DmanDmythDledge

Also if an expense is client entertainment the whole cost of the lunch is not an allowable expense, not just the portion relating to client.

4ensic15

The only way it is deductible is to have a conference and pay for a room and supplied refreshments.