Claiming subsistence as a sole trader – meals, hotels, and what HMRC allows

If you’re self-employed and spend time working away from your usual base, you’ve probably paid out for the odd sandwich, hotel stay, or overnight meal.

The question is: Can you claim the costs back as business-related expenses?

Subsistence is one of those grey areas that HMRC looks at closely, so it’s essential to know the rules and their nuances.

There’s nothing wrong with claiming food and drink during a genuine business journey. However, it must meet certain specific conditions, and if the expense is truly personal, it’s not deductible.

Here’s what you need to know, including real HMRC guidance and examples of what typically is (and isn’t) allowed.

What counts as subsistence?

Subsistence refers to the basic costs incurred while travelling for business, typically including meals, non-alcoholic beverages, and accommodation if you’re staying overnight.

Importantly, however, HMRC won’t let you expense food-related costs just because you’re working.

“The cost of food and drink consumed, and accommodation used, by a trader is not in general an expense incurred wholly and exclusively for the purposes of the trade.”
— HMRC BIM47705

In other words, everyone needs to eat – so lunch at your desk, or a snack at your regular workspace, doesn’t count. The key test is whether the expense was incurred solely for business reasons.

When can you claim subistence expenses?

Subsistence claims are usually valid when:

• You’re away from home or your normal work location
• The journey is occasional or irregular (not your daily commute)
• You had no choice but to buy food or stay overnight to do your work
• The cost is reasonable and not extravagant

“A deduction is… allowable for reasonable expenses on food and drink… if the trader does not travel to the place more than occasionally.”
— HMRC BIM47705

They also explicitly allow claims for:

“Hotel accommodation and reasonable costs of overnight subsistence… where a business trip by a trader necessitates one or more nights away from home.”

So a train to Manchester for a client meeting, with a Pret lunch – fine. Two nights at a Premier Inn for a conference in Leeds, plus dinner and breakfast – also fine.

Common subsistence examples

Working patterns can trip people up

This is where some sole traders get tripped up. If you work from lots of different sites regularly, HMRC might argue that travelling to those places is your pattern – meaning meals en route are part of your normal lifestyle.

But if the job is a one-off, or something you only do now and then, the rules are more lenient.

If in doubt, keep a note of how often you’ve travelled to that location – it helps build a case if questioned.

What about overnight stays?

If you’re genuinely away for work and need to stay overnight, you can typically claim for the following:

• Your hotel or B&B (keep the receipt)
• Dinner that evening
• Breakfast the next morning
• Light snacks or refreshments during the journey

Again, HMRC uses the word “reasonable.” They’re unlikely to blink at £30 for dinner or £80 for a hotel – but £180 on room service with wine and steak? Probably not.

You need to keep accurate records

If you want to claim subsistence expenses, you’ll need to back them up properly:

• Hang onto all receipts (or take digital photos)
• Note the date, location, and purpose of the trip
• Record the amount and the type of expense (e.g. lunch, hotel, breakfast)

If you’re using software like Xero, tag the expense under a relevant category, such as ‘Travel and subsistence’. If you use a spreadsheet, keep a column for the reason for travel.

Can I use HMRC’s benchmark meal rates?

In theory, yes – but only if you’ve agreed it with HMRC in advance.

These “scale rates” allow you to claim set amounts for meals, without providing receipts each time. However, they’re usually designed for businesses with employees. Sole traders need specific approval to use them – and most don’t bother, as it’s easier to claim actual costs with proof.

Would you have done this if it wasn’t for work?

Subsistence claims are entirely legitimate, but only under the right circumstances. Think occasional travel, genuine business purpose, and no personal overlap.

If you’re not sure whether a meal or hotel bill qualifies, ask yourself:
“Would I have done this if it wasn’t for work?”
If the answer’s no, and you’ve got a receipt, you’re probably safe.