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Are meals claimable?

#Post
1

Asking on behalf of a friend (yes really!)
They have a rental in another city to where they live. Went down there to do some painting and find a replacement tenant. They can claim their mileage but asked me if they can claim the meals they ate out? I don't think so but I said I would ask the knowledgeable people on here.
Yes they will take this to the accountant but just wondering if they need to hunt out the restaurant receipts :-)
Thanks for any help!

shepa1 - 2021-04-27 18:46:00
2

Yes and if they paid for accommodation in the location they would be able to claim that as well.

nzkiwisnz - 2021-04-27 18:51:00
3

Thanks for that, that surprises me! Will tell her to look for her receipts then!
So does that mean that when I go to our holiday home (we rent it out on Bookabach) to do maintenance, that we can claim for our meals too? I've never thought of that!

Edited by shepa1 at 6:59 pm, Tue 27 Apr

shepa1 - 2021-04-27 18:58:00
4
shepa1 wrote:

Asking on behalf of a friend (yes really!)
They have a rental in another city to where they live. Went down there to do some painting and find a replacement tenant. They can claim their mileage but asked me if they can claim the meals they ate out? I don't think so but I said I would ask the knowledgeable people on here.
Yes they will take this to the accountant but just wondering if they need to hunt out the restaurant receipts :-)
Thanks for any help!

As far as I am aware personal meals cannot be claimed but buying a meal for a client (prospective tenant?) can be claimed as a business expense.
This was the advice I received a few years ago so may have changed by now.
The reasoning was that you would have to eat whether you were away or at home

Edited by perfectimages at 7:21 pm, Tue 27 Apr

perfectimages - 2021-04-27 19:12:00
5

https://www.ird.govt.nz/property/renting-out-residential-pro
perty/residential-rental-income-and-paying-tax-on-it/rental-
expense-deductions

I believe comes under 'travel expenses for travelling to inspect your property or to do repairs'

nzkiwisnz - 2021-04-27 19:22:00
6
perfectimages wrote:

As far as I am aware personal meals cannot be claimed but buying a meal for a client (prospective tenant?) can be claimed as a business expense.
This was the advice I received a few years ago so may have changed by now.

The reasoning was that you would have to eat whether you were away or at home

Correct

sunnysue1 - 2021-04-27 19:57:00
7

This is interesting, so far we are evenly split with 2 yes and 2 no :-)

shepa1 - 2021-04-27 20:22:00
8
perfectimages wrote:


The reasoning was that you would have to eat whether you were away or at home

No - its deductible as it assumes that meals whilst travelling are more expensive than meals prepared at home.

sparkychap - 2021-04-27 20:23:00
9

so is it the difference in cost that is claimable?

gph1961 - 2021-04-27 21:11:00
10
gph1961 wrote:

so is it the difference in cost that is claimable?

Yes, you need to buy the meal out at a restaurant or wherever, then get home and prepare exactly the same thing so you know what it would have cost, then you can work out the difference.

No, it just means you can claim the whole lot.

sparkychap - 2021-04-27 21:15:00
11

But........could I claim 7 course degustation meal with matching wine at @ $290 a head? Asking for a friend.

cinderellagowns - 2021-04-27 21:17:00
12
sparkychap wrote:

Yes, you need to buy the meal out at a restaurant or wherever, then get home and prepare exactly the same thing so you know what it would have cost, then you can work out the difference.

No, it just means you can claim the whole lot.

yep, just claim whatever you spent. If my husband buys a Takeaway, he claims that, if its a sit down restaurant meal he claims that. He's an employee required to travel occaisionally.

heather902 - 2021-04-27 21:18:00
13

It sounds strange, as they would have had a meal anyway-inspecting the property or just being at home. It was their choice to prepare a sandwich at home or to have a 3 course meal at the $$$ restaurant. If you work at the office, you don't claim your meal, unless it's a business lunch to attract new clients, etc... presumably the rental they were painting, had a stove and a fridge or at least a floor on which they could sit and eat a sandwich which they made from the local supermarket's food? If instead they decided to go out, seems unlikely IRD would consider this as a legit expense

Edited by evoalg at 9:32 pm, Tue 27 Apr

evoalg - 2021-04-27 21:28:00
14
cinderellagowns wrote:

But....-
....could I claim 7 course degustation meal with matching wine at @ $290 a head? Asking for a friend.

Not if it's with Seaqueen as that would be just the wine.

sparkychap - 2021-04-27 21:30:00
15
evoalg wrote:

It sounds strange, as they would have had a meal anyway-inspecting the property or just being at home. It was their choice to prepare a sandwich at home or to have a 3 course meal at the $$$ restaurant. If you work at the office, you don't claim your meal, unless it's a business lunch to attract new clients, etc...

But when you travel and perhaps leave at 5 am in the morning for maybe a couple of days , its not a reasonable request of an employer that you pack chili bins of food etc... Same principal applies if you are self employed.

heather902 - 2021-04-27 21:32:00
16
heather902 wrote:

But when you travel and perhaps leave at 5 am in the morning for maybe a couple of days , its not a reasonable request of an employer that you pack chili bins of food etc... Same principal applies if you are self employed.

I think in this case there is a food allowance which would be quite limited, not a $290 per head, probably. But then where do you stop-you would need to use some toilet paper (after all those claimed meals)-do you claim that as "business expense"? The whole roll or only half of it

evoalg - 2021-04-27 21:37:00
17
evoalg wrote:

I think in this case there is a food allowance which would be quite limited, not a $290 per head, probably. But then where do you stop-you would need to use some toilet paper (after all those claimed meals)-do you claim that as "business expense"? The whole roll or only half of it

I don't know? I don't think my husband has ever had a claim denied in 14 years with the same company eating out. I see the the amounts come out of our accounts and are generally pretty modest. He can also just shop at a supermarket if his accommodation provides cooking facilities which he often does as he brings home food he has'nt used.

heather902 - 2021-04-27 21:41:00
18

Somehow the discussion has changed to whether an employee can claim meals as an expense, when we should be talking about the owner of the business ie The owners of the rental property which is is being run as a business.
As the OP said they will have to talk to their accountant about it. Mine has told me (in the past) that you cannot claim for your own personal meals.
But it MAY be open to interpretation and with some creative accounting it may be worth a try. (re- read my post #4)

Edited by perfectimages at 11:22 pm, Tue 27 Apr

perfectimages - 2021-04-27 23:08:00
19
perfectimages wrote:

Somehow the discussion has changed to whether an employee can claim meals as an expense, when we should be talking about the owner of the business ie The owners of the rental property which is is being run as a business.
As the OP said they will have to talk to their accountant about it. Mine has told me (in the past) that you cannot claim for your own personal meals.
But it MAY be open to interpretation and with some creative accounting it may be worth a try. (re- read my post #4)

Just book into a motel with a restaurant, problem solved.
Especially if they do room service, then you just book a time for it to be delivered.

Edited by smallwoods at 8:19 am, Wed 28 Apr

smallwoods - 2021-04-28 08:18:00
20
perfectimages wrote:

Somehow the discussion has changed to whether an employee can claim meals as an expense, when we should be talking about the owner of the business ie The owners of the rental property which is is being run as a business.
As the OP said they will have to talk to their accountant about it. Mine has told me (in the past) that you cannot claim for your own personal meals.
But it MAY be open to interpretation and with some creative accounting it may be worth a try. (re- read my post #4)

You can't just claim meals willy-nilly if you're nipping over to the other side of town. But if you had to travel from (say) Auckland to Hamilton, then your mileage (kilometerage?), meals and possibly even accommodation could be claimed as a business expense.

As always there's a "reasonableness" factor that would be applied should you be audited by the IRD. Also if you combine the maintenance trip with a holiday (say staying at the bach for a few days break) then the amount you can claim drops, if I recall.

sparkychap - 2021-04-28 08:34:00
21
cinderellagowns wrote:

But....-
....could I claim 7 course degustation meal with matching wine at @ $290 a head? Asking for a friend.

Remember... just because you can claim it as a business expense does not make it free.. you will still have to take $290 from the business bank account and pay it to the restaurant. It just means you can take $290 that you have received in rent and pay it to the restaurant, instead of having to collect a sum greater than $290 in rent, pay some of it to the tax man and then use the rest to pay the restaurant.

onl_148 - 2021-04-28 14:53:00
22
perfectimages wrote:

As far as I am aware personal meals cannot be claimed but buying a meal for a client (prospective tenant?) can be claimed as a business expense.
This was the advice I received a few years ago so may have changed by now.
The reasoning was that you would have to eat whether you were away or at home

That's what I would have thought, but its what the accountant thinks that counts.

curlcrown - 2021-04-28 16:54:00
23
heather902 wrote:

yep, just claim whatever you spent. If my husband buys a Takeaway, he claims that, if its a sit down restaurant meal he claims that. He's an employee required to travel occaisionally.

He will be claiming from his employer...not from the IRD. Big difference.

sunnysue1 - 2021-04-28 17:29:00
24
curlcrown wrote:

That's what I would have thought, but its what the accountant thinks that counts.

it’s what the IRD thinks that counts...

sparkychap - 2021-04-28 17:42:00
25

https://www.ird.govt.nz/income-tax/income-tax-for-businesses
-and-organisations/types-of-business-expenses/entertainment-
expenses

logo - 2021-04-28 18:24:00
26

https://www.gilesandliew.co.nz/the-ultimate-guide-to-enterta
inment-expenses/

logo - 2021-04-28 18:27:00
27

As Paul Weller said “That’s Entertainment”....

sparkychap - 2021-04-28 18:29:00
28
sparkychap wrote:

Not if it's with Seaqueen as that would be just the wine.

I'm still here, you know! I CAN read!

seaqueen - 2021-04-28 18:32:00
29
seaqueen wrote:

I'm still here, you know! I CAN read!

Lol, he thought he’d be cheeky and try to get away with it????????

thumbs647 - 2021-04-28 19:19:00
30
seaqueen wrote:

I'm still here, you know! I CAN read!

I know you're still here, even though you pretend not to be.

sparkychap - 2021-04-28 19:58:00
31

The answer is still YES.

nzkiwisnz - 2021-04-29 17:26:00
32
sparkychap wrote:

As Paul Weller said “That’s Entertainment”....

I thought that was Morrissey.

committed - 2021-04-29 17:35:00
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