Ever wondered if these are tax deductible? In this video, you’ll learn if coffee meetings with clients are tax deductible. Hi my name is Harvee from Inspire, I’m a coffee addict and stay tuned! So anyone who knows me knows that I’m a big coffee freak. I have about three or four cappuccinos everyday and my favourite coffee shop is Bellissimo, you’ve got to try it. It’s around the corner from Inspire and there’s also one around from my house so I get it everywhere. I was down there meeting with a prospective client the other day and I shouted the coffees of course and I went to pay for the coffees and the kind girl behind the desk asked
me “would you like a tax invoice?” and it made me think, why would I need a tax invoice? are coffee meetings tax deductible? So I went back to Inspire and asked the accountants this very question and here’s what they told me. So you can claim meals while you’re travelling over night. So if you’re an employee and you’re going off to a conference and you’re away from your usual home, then you can claim that meal. Now there’s guidance from the ATO but budget for around one hundred dollars per night. That means you might be able to go to The Coffee Club and grab a bolognaise but I wouldn’t really be going to Jamie’s Italian and getting a full course meal. You can claim meals supplied as a working lunch. So say you’ve got a team, and this happens quite regularly during tax time. We’re really busy and we tend to work late so we go out and buy Dominos and that’s fine, because that’s all part of keeping the progress going with regards to our work. So if it’s related to our team being able to continue working, then that’s ok. You can claim meals supplied from an in-house canteen or cafe. So I know this really cool engineering business in West End who have a chef in-house, and they supply meals for their team throughout the day. What a great place to work! and these items would be tax deductible and exempt of FBT. You can claim snacks on the road while you’re going as a business owner. So as a business owner, you might be out and about meeting with clients throughout the day so grabbing a coffee and a muffin here and there while you’re doing your day-to-day work is A-OK. but again, you’ve got to be reasonable. The ATO isn’t stupid, if you’re putting through seven-course degustation lunches instead of a coffee here and a muffin, it’s probably not going to go down so well. So there’s the four rules with regards to how to make coffee meetings and meals tax deductible. But, my advice to you as a fellow business owner is to focus on whatever investment you make into your business, whether it’s a coffee meeting here, or whether it’s a facebook ad, what is the return on investment you’re going to get from that? I always try to aim for five to twenty times ROI, and this is the focus point for you as a business owner. If it turns out to be tax deductible as a result, well bonus. If it isn’t, move on. There is no point in trying to spend an hour, trying to make a 20 cent tax saving on an orange mocha frappuccino that you had on the weekend and then risk that concern and anxiety that might come from being audited. So focus the biggest bang for your buck. We all want to pay as little tax as possible, so to help you out, we’ve put together a small guide called 7 Common Business Expenses you probably didn’t reallise were tax deductible. If you want to read that, you can click on this link to download it now.