Self Employment FAQ - Expensing Meals
Meals & Entertainment Expense
What you need to know!
The maximum amount you can claim for food, beverages, and entertainment expenses is 50% of the amount you incur.
There are a few instances where you can claim 100% of meal and entertainment expenses. These include:
For self-employed individuals, you bill your client or customer for the meal and entertainment costs and show these costs on the bill. However, the 50% limitation would apply to the client.
You are traveling by plane, train or bus and the cost of meals, beverages, and entertainment is included in the travel fee. It's a different case if you’re traveling by ship, boat, or ferry, though; in that case, you can only claim 50% of any food, beverages and/or entertainment.
You include the amount of entertainment and meal expenses in an employee's income or would include them if the employee did not work at a remote or special work location.
You incur meal and entertainment expenses for a Christmas party or similar event, and you invite all your employees from a particular location. Note that the event doesn’t have to be held at your place of business; if you host an event for all employees at a restaurant, rented hall or other location, you can still deduct 100% of your food and entertainment expenses. However, the guest list must be democratic. If, for instance, your party or event is only available to owners, partners, managers or shareholders and/or selected employees, your expense deductions are limited to 50%. Note, too, that you can only claim expenses for six such events a year.