As a Perth contract bookkeeper I am often asked this question or looking through receipts find that the client expects to be able to claim their personal meals as a business expense. Quite simply, NO you can’t!
A self employed business owner can deduct an expense only if it is necessary for their business. An ordinarily meal taken during their lunch break is only deductible if you are away on a business trip.
In general terms, the cost of a meal is not deductible as it is a private expense. Meals consumed in the normal course of a working day have been denied as not having sufficient connection to an income producing activity.
I do point out to my clients with regards to food and meals is that everyone must eat in order to live, so whether you are working or not, you still have to eat. It doesn’t make sense that a PAYG employee has to pay for their own lunch and meal costs and not be able to claim for it so why should a business owner with the same costs should regard it as a business expense?
Check out my website www.bookkeepingfairyperth.com.au or contact Jaleana 0400 102 358