Coffee and tax relief: Not always a perfect blend
A common question we hear when it comes to employment tax is: “Can I claim tax relief on my daily coffee?” In short, it depends on where you're working and what you're doing.
In the UK, HMRC only allows tax relief on travel and subsistence expenses in certain circumstances - specifically, when you're travelling to a temporary workplace. So, if you're grabbing a coffee while on a business trip, visiting a client, or working away from your usual base for a short-term assignment, that expense might be claimable.
However, if you're popping into the café around the corner from your regular office, or getting a cappuccino while working from your usual location (even if it’s a co-working space or client site you attend regularly), it’s a different story. In these cases, HMRC considers that coffee a personal expense - and tax relief won't apply.
What counts as a temporary workplace?
HMRC applies strict rules when defining a “temporary” workplace. In general, a workplace is considered permanent (even if you’re “on the road” much of the time) if:
- You attend the same location for more than 24 months, or
- That location represents your permanent base of operations (regardless of job title or contract).
Watch out for reimbursed expenses
If an employer reimburses coffee, meals, or other everyday expenses at a permanent workplace, it could create a benefit-in-kind for the employee. That could mean additional tax and National Insurance liabilities for both parties - often an unintended and unwelcome consequence.
In summary
As always, the devil is in the detail, and there may be other exemptions to consider. It’s important that all facts are reviewed and advice is sought where necessary.
We’re here to help
If you’re unsure how these rules apply to your situation, our team is here to help. Whether it’s coffee, travel, or any other day-to-day expense, we can guide you through the rules to ensure you're compliant and your position is optimised.
Please get in touch with one of our Employment Tax specialists via the form below.