Business Meals: What You Can (and Definitely Can’t) Claim

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The deliciously confusing world of IRD and deductions, served with a side of sass.

If you’re self-employed or running a business, chances are you’ve asked yourself the age-old question: “Can I claim this lunch as a business expense?”

Short answer: Maybe.
Longer answer: It depends… and IRD loves a good twist.

Let’s break it down, What’s On the Menu?

100% Deductible Meals

Yes, some meals are fully deductible – but only if they meet specific criteria. Think:

  • Staff meals while travelling for work (overnight trips)
  • Food at training or conferences (4+ hours long)
  • Light snacks during board meetings (hello, biscuits!)
  • Public promotional events with free food (not invite-only)
  • Overtime meal allowances for staff
  • Meals consumed overseas for genuine work purposes

The key? It’s got to be business-related, not a perk, party, or personal pick-me-up.

50% Deductible Meals

Here’s where things get spicy.

  • Client lunches or dinners (even when you talk shop)
  • Team functions and office parties
  • Food gifted in hampers or staff gifts
  • Meals with a hint of social benefit (staff drinks, anyone?)
  • Meals during work travel with entertainment mixed in

You can claim half – but only half. IRD calls it “entertainment.” We call it “the fun stuff.”

Non-Deductible Meals

Yep, there’s a blacklist.

  • Your own lunch or coffee between jobs
  • Family dinners (even if you chat about your business idea with Uncle Dave)
  • Sole Traders, want to claim meals? That’s a no from us.

Basically, if it feels like something you’d buy for yourself anyway — IRD probably thinks so too.

Common Mistakes That’ll Land You in Tax Drama

  • Claiming every client lunch as 100% deductible
  • Shouting the team a Friday feed and forgetting it’s entertainment
  • Not separating food vs. non-food in gift baskets
  • No receipts, no names, no idea = no deduction

In short, over-claiming or sloppy records will land you in hot water.

Record It or Regret It

To claim any meal expenses (especially those juicy 100% ones), you need to keep:

  • The receipt or invoice
  • Who was there
  • Why it happened
  • Where it took place

Think of it like Instagramming your food – but for the IRD, not the ‘gram.

Final Word from the Monarch Table

Just because you pay for food through your business, doesn’t mean IRD will give it the thumbs up. Some meals will go down smooth at 100%. Others? Barely nibble at 50%. And some are off the menu completely. Knowing the difference saves you money, protects you from audits, and keeps your financials as fresh as your coffee.

Confused about what you can and can’t claim?

We’ve got your back (and your snacks). – Give us an email or better yet, pick up the phone and have a chat!

Bon appétit – and deductible meals only, please.

Book a Chat!