Whether you’re a limited company or sole trader, claiming valid business expenses can reduce your tax bill, but figuring out what you’re allowed to claim can be tricky.

A common misconception among coaches and personal trainers is thinking that coaching client meals are business expenses that can be used to save on your tax bill.

Is that true? Actually, no.

If you take a client out for lunch your coaching business can pay for the meal, and it can be included in your accounts, but when we calculate your tax, this expense won’t be used to reduce your bill.

When it comes to calculating your taxable profits, it gets added back in that calculation and won’t help you with your tax burden at all.

Now, an allowable business expense would be travel subsidies. For example, when you purchase a meal during travel for what is classed as a business purpose, you can count the cost as a business expense as it’s outside your normal working routine.

What is classed as a “business purpose”?

Attending client shows & competitions, client photo shoots, travelling to meet or train clients, a seminar or business event, and so on, can all be classed as a business expense.

Just remember to keep your receipts!