What can project management contractors claim for meals and subsistence?

Understanding the basics of contractor meal and subsistence claims

As a project management contractor, understanding what you can claim for meals and subsistence is fundamental to optimizing your tax position. Many contractors miss out on legitimate expense claims or, worse, claim incorrectly and face HMRC enquiries. The rules surrounding subsistence claims are specific and depend heavily on your working arrangements, particularly whether you're working at a temporary workplace or have a permanent place of work.

The fundamental question of what can project management contractors claim for meals and subsistence hinges on HMRC's definition of a temporary workplace. If you're engaged at a client site that qualifies as temporary, you may be able to claim for the cost of meals and other subsistence expenses incurred because of your temporary work location. However, if the site becomes a permanent workplace through long-term engagement, these claims become invalid.

Using dedicated tax planning software can transform how you track and claim these expenses. Instead of manually calculating what's allowable, the software automatically applies HMRC's rules to your specific circumstances, ensuring you maximize legitimate claims while maintaining full compliance.

HMRC rules for temporary workplaces and qualifying travel

To determine what can project management contractors claim for meals and subsistence, you must first establish whether you're working at a temporary workplace. According to HMRC, a workplace is considered temporary if your attendance is for a limited duration or for a temporary purpose. Specifically, a location qualifies as temporary if you work there for less than 24 months, or you expect to work there for less than 24 months when you first start.

For project management contractors, this means if you take on a contract expecting it to last less than two years, the client site qualifies as temporary. During this period, you can claim subsistence expenses including meals, drinks, and incidental overnight costs when working away from your permanent workplace. The moment you know the contract will extend beyond 24 months, the workplace becomes permanent from that point forward.

Qualifying travel is another critical component. You can claim the cost of travel from your permanent workplace to temporary locations, including associated subsistence costs. However, ordinary commuting from home to a permanent workplace doesn't qualify. Understanding these distinctions is essential for accurate claims.

What exactly can you claim? Allowable expenses explained

So what specific items can project management contractors claim for meals and subsistence when working at temporary locations? Allowable expenses include:

• Meals and non-alcoholic drinks during working days at temporary locations
• Overnight accommodation when working away from home
• Incidental overnight expenses (up to £5 per night for UK travel, £10 for overseas)
• Parking charges and tolls for business travel
• Public transport costs to temporary workplaces

For 2024/25, you can either claim the actual cost of meals (keeping receipts) or use HMRC's benchmark scale rates. The benchmark meal allowance is £5 for trips of 5 hours or more, £10 for 10-hour trips, and £25 for trips of 15 hours or more where work continues after 8pm. Many contractors find the benchmark rates simpler as they eliminate receipt-keeping, though you must keep records of your travel and working patterns.

When considering what can project management contractors claim for meals and subsistence, it's crucial to distinguish between business and personal elements. For example, if you extend a business trip for personal reasons, you can only claim expenses for the business portion. This is where automated tracking through tax calculation tools becomes invaluable for accurate apportionment.

Practical examples and calculation scenarios

Let's examine practical scenarios to illustrate what can project management contractors claim for meals and subsistence. Imagine you're a project manager on a 12-month contract 50 miles from home. Each working day, you travel directly to the client site, work 9 hours, and return home. In this scenario:

• You can claim mileage at 45p per mile for the first 10,000 business miles
• You can claim £10 per day for meals under the 10-hour benchmark rate
• If you occasionally stay overnight near the client site, you can claim accommodation and evening meals

Now consider a different scenario: you're on an 18-month contract but after 12 months, the client extends it for another 12 months. From the moment you know the total duration will exceed 24 months, the workplace becomes permanent. You can no longer claim travel or subsistence from that decision point, though previous claims remain valid.

These nuanced rules demonstrate why understanding what can project management contractors claim for meals and subsistence requires careful tracking of contract durations and working patterns. Manual tracking becomes increasingly complex with multiple contracts, which is why many contractors use specialized software to automate these determinations.

Record-keeping requirements and compliance essentials

Proper documentation is non-negotiable when claiming subsistence expenses. Whether you're using actual costs or benchmark rates, HMRC requires you to maintain records that demonstrate:

• The purpose and business nature of each expense
• Dates and locations of temporary work
• Receipts for actual cost claims (over £5)
• Records of travel patterns and working hours for benchmark rates
• Contract details showing expected and actual durations

For project management contractors wondering what they can claim for meals and subsistence, the record-keeping burden can be substantial. This is particularly true for those working across multiple client sites or with varying working patterns. Digital tools that capture receipts, track mileage, and record working patterns automatically create the audit trail HMRC expects.

Failure to maintain adequate records can result in HMRC disallowing expenses and charging penalties. With Making Tax Digital for Income Tax Self Assessment coming for self-employed individuals and landlords from April 2026, digital record-keeping will become mandatory anyway. Getting ahead of this requirement with proper systems makes both compliance and claiming simpler.

How technology simplifies subsistence claim management

Modern tax planning platforms transform how contractors approach the question of what they can claim for meals and subsistence. Instead of manual calculations and spreadsheet tracking, automated systems:

• Apply HMRC's temporary workplace rules based on contract dates
• Calculate allowable benchmark rates according to your working patterns
• Track mileage and suggest optimal claiming methods
• Store digital receipts and create expense reports
• Integrate with self-assessment tax returns

For project management contractors specifically, understanding what can be claimed for meals and subsistence becomes significantly easier with real-time tax calculations. As you input expenses and working patterns, the system immediately shows the tax impact and compliance status. This proactive approach prevents common errors like claiming beyond the 24-month threshold or mixing business and personal expenses.

Many contractors find that using dedicated software not only ensures they claim everything they're entitled to but also saves considerable administrative time. The automation of complex rules means you can focus on delivering projects rather than deciphering tax legislation. For contractors seeking to optimize their tax position, this technological approach delivers both financial and time benefits.

Strategic planning for optimal tax efficiency

Beyond simply understanding what can project management contractors claim for meals and subsistence, strategic contractors use this knowledge to plan their engagements tax-efficiently. For example, if you're approaching the 24-month threshold at a client site, you might:

• Negotiate a different working pattern that creates qualifying travel
• Structure subsequent contracts to maintain temporary status
• Plan engagements to optimize travel and subsistence claims
• Use tax scenario planning to model different engagement structures

The question of what can project management contractors claim for meals and subsistence isn't just about compliance—it's about strategic tax planning. By understanding the rules and using technology to apply them accurately, you can significantly reduce your tax liability while remaining fully compliant with HMRC requirements.

As tax regulations evolve and Making Tax Digital expands, the ability to accurately track and claim subsistence expenses will become increasingly important. Contractors who establish robust systems now will be well-positioned for future compliance requirements while maximizing their tax efficiency today.