Don't forget your tax free business meal

6 April 2009

There is a new change which came in to force in April 2009 regarding subsistence expenses which will benefit all Self Employed traders.

Section 57a of the Income Tax (trading & other income) ACT 2005 takes effect on 6 April 2009.  It says that a tax deduction for the cost of food and drink maybe claimed where the cost of the corresponding travel is allowed.

Self Employed traders can claim travel expenses, as long as the person concerned is not travelling to the same place everyday as part of the normal pattern of work.  Thus most traders will be able to claim subsistence expenses.

There has been no change in the rules regarding business entertainment expenses.  Tax relief is not allowed on the cost of meals for customers etc.

This is a new change and new relief; make sure that you claim it.