Are client meals deductible in the UK and Spain?
Client entertaining is not allowable
However business-critical the lunch, HMRC does not allow entertaining clients as a deduction for sole traders or companies. You can pay for it through the business, but it's added back for tax.
Deductible, capped at 1% of turnover
Spain allows gastos de atenciones a clientes — client meals and hospitality — as deductible, capped at 1% of your net turnover for the year. It needs a proper factura and a defensible business context; a Saturday dinner for four with no client attached invites questions.
If you file in both countries
A genuine 'deductible in Spain, not in the UK' case — the mirror image of most comparisons on this list. If you split income across both systems, tag client meals to the Spanish side of your evidence from the start.
Evidence to keep
- ✓Factura completa from the restaurant with your NIF (ask — Spanish restaurants do this daily)
- ✓Card payment, not cash
- ✓A one-liner of who and why: client or prospect name and the business purpose
Frequently asked questions
Is there really no UK deduction for taking a client to lunch?
Correct — client entertaining is specifically non-deductible for UK tax, regardless of how clearly it relates to winning business.
How does the 1% Spanish cap work?
Client-attention costs above 1% of your annual net turnover stop being deductible. Under the cap, they're allowable with proper facturas and business justification.
Forensix provides software for organizing tax records and producing estimates. We are not registered tax advisors; rules change and individual circumstances differ. Treat this page as general information and confirm your own case with a gestor or accountant before filing.