Can I claim expenses for business networking events?

Can I claim expenses for business networking events?

Networking is one of those business activities that feels both essential and slightly slippery when it comes to tax. You can usually explain why attending a conference dinner, an industry meetup, or a trade association breakfast matters for your work. But tax rules don’t care that it was “good for exposure” in the abstract. They care whether the cost is an allowable business expense, whether it has a dual personal purpose, and how closely it relates to the way you generate income. The good news is that many networking-related costs can be claimed in the right circumstances. The bad news is that the most common networking costs—food, drink, and hospitality—sit in one of the most heavily restricted areas of business tax.

This article walks through how to think about claiming expenses for business networking events, what typically qualifies, what often doesn’t, how to evidence the business purpose, and how the answer may differ depending on whether you’re self-employed, operating through a company, or employed. Because rules vary by jurisdiction, you should treat this as general guidance and apply it to the tax rules where you operate, or confirm with a qualified tax adviser. Even with that caveat, the practical principles are remarkably consistent: the clearer the business purpose and the less “entertaining” the expense, the easier it is to justify.

What “claiming expenses” actually means

Before diving into examples, it helps to clarify what you mean by “claim.” In most tax systems, claiming an expense means deducting it from taxable income so you pay tax on a smaller profit. Sometimes it also affects indirect taxes (like VAT/GST) or payroll reporting (if an employer reimburses you). The same cost can be treated differently depending on:

1) who pays (you personally, your business, your employer),

2) the legal structure (sole trader, partnership, limited company, employee),

3) the nature of the expense (travel vs meals vs tickets vs sponsorship), and

4) who benefits (you alone, your staff, clients, or the public).

It also matters whether the event is about building business relationships (which can be allowable in certain forms) or primarily about entertaining (which is frequently restricted). In practice, the central question is: “Was this expense incurred wholly and exclusively for business?” Many systems use this concept directly or indirectly, and it’s where most networking expenses are won or lost.

The core test: business purpose and exclusivity

Networking is about relationships, which makes the line between business and personal feel fuzzy. Tax authorities usually draw the line by asking whether the expense was necessary for, and solely attributable to, your business activity. That doesn’t mean the expense must be strictly required to operate—many valid business costs are “helpful” rather than “mandatory.” It does mean the cost must not be partly personal in a meaningful way. If a cost has dual purpose—part business, part personal—it may be disallowed or only partly allowable depending on the rules.

For example, paying membership fees for an industry association can be a clear business expense if the membership supports your professional activity, gives you access to industry updates, and facilitates business development. But taking a friend to a gala dinner “to network” is likely to be treated as entertainment or personal hospitality, especially if it’s not clearly tied to a business meeting with a client or a prospective client.

In many jurisdictions, even where the business purpose is legitimate, entertainment and hospitality rules can override general deductibility. That’s why networking costs are best understood by breaking them down into categories.

Common networking event costs and how they’re usually treated

1) Event tickets and entry fees

Tickets to industry conferences, trade shows, seminars, workshops, and business meetups are often the easiest networking costs to justify, especially when the event has an obvious professional focus. If the content is relevant to your field or the event is designed to connect businesses, then the entry fee is commonly treated as a business expense.

However, watch out for events that are more social than professional, or where the ticket bundles a lot of hospitality (for example, a luxury sports box, a black-tie dinner, or a festival-style event). The more the ticket resembles entertainment, the more likely it is to be restricted or require careful analysis. If the ticket includes a training component (speaker sessions, panels, continuing education), that strengthens the business case. If it’s primarily “an evening of fine dining and networking,” the hospitality element may dominate the tax treatment.

Practical tip: Keep the agenda, marketing page screenshot, email invitation, or program that shows what the ticket is for. A one-line receipt saying “Gala Ticket” is a weak narrative; a program showing industry speakers and scheduled business sessions is much stronger.

2) Travel to and from the event

Travel is often claimable if the trip is primarily for business. That can include public transport fares, mileage, parking, taxis, and in some cases accommodation. The key is that the travel must be to attend the networking event in the course of your business.

Where travel gets complicated is when you combine the event with personal travel. For example, you fly to another city for a two-day conference and then stay three extra days for leisure. Some systems allow you to claim the business portion (such as the conference days and associated costs) but not the personal portion. Other systems look at the main purpose of the trip. If the primary purpose is business and the personal time is incidental, travel may be claimable. If the primary purpose is personal and the event is incidental, you may not be able to claim much at all.

Practical tip: If you’re blending business and leisure, document your itinerary and keep it clean. Separate hotel bookings, keep conference registration details, and try to avoid muddying the waters by charging obviously leisure activities through the business.

3) Meals and drinks at networking events

Meals and drinks are where many networking claims go to die. In lots of tax regimes, client entertainment is not deductible or is restricted. Even when it’s deductible in limited circumstances, it often triggers extra reporting requirements. The policy reasoning is that hospitality is easy to abuse and hard to distinguish from personal enjoyment.

So can you claim meals and drinks at a networking event? Sometimes yes, sometimes no, and sometimes only if the meal is incidental to a more substantive business purpose.

Here are the common patterns:

Meals while traveling for business: If you are traveling away from your normal place of work for a business event, meals can be claimable as subsistence or travel-related expenses, subject to local rules. This is often easier to claim than “client entertainment,” because it’s framed as a necessary cost of travel rather than hospitality.

Meals included in the ticket price: If the ticket is clearly for a business conference and includes lunch/refreshments, the cost may be treated as part of the conference fee. But where the “conference” is essentially a dinner event, the hospitality restrictions may still apply.

Buying rounds or hosting a table: If you are buying drinks or paying for a table for others, that begins to look like entertainment. Even if you are talking business, the tax system may still treat it as hospitality. In some places it may be disallowed; in others it may be allowed only for staff functions or limited promotional events open to the public.

Informal coffee meetings: Small, incidental costs like coffee or a light snack during a business discussion are sometimes treated more leniently than lavish meals, but this varies. Even if the amount is small, the principle can still be “hospitality.” That said, many businesses take a pragmatic approach: they claim modest incidental refreshments connected to meetings, and they avoid claiming anything that looks like entertainment.

Practical tip: Don’t assume that “networking” automatically converts a meal into a deductible expense. The safer position is usually to treat client hospitality as restricted unless you have a specific reason it qualifies in your jurisdiction. If you do claim, be ready to show the business purpose and who you met.

4) Accommodation for networking events

Accommodation is typically claimable when you have to stay overnight to attend a business event away from your usual base. As with travel, the main purpose of the trip matters. If you book a luxury hotel with spa add-ons, late checkout, or extended leisure nights, you may need to split business and personal elements or risk the whole claim being challenged.

Also be cautious about bringing a partner or family member. If the hotel room is more expensive because a non-business guest comes along, the incremental personal cost may be disallowed. Some systems will allow the basic cost you would have incurred anyway, but not the additional cost created by personal accompaniment.

Practical tip: If you travel with someone for personal reasons, consider paying the difference personally and keeping evidence of what the “business-only” cost would have been.

5) Membership fees, subscriptions, and networking clubs

Many networking opportunities come through memberships: chambers of commerce, trade bodies, professional associations, industry groups, coworking communities, and networking clubs. Membership fees are often deductible if the organisation is relevant to your trade and membership is for business purposes.

But if the “networking club” is essentially a lifestyle club—exclusive dining, leisure facilities, social events—the tax position can turn negative fast. Even if you meet business contacts there, the membership might be treated as primarily personal benefit or entertainment. Where the membership includes access to facilities you use personally, it becomes hard to argue exclusivity.

Practical tip: Keep a note of how the membership supports your business: referrals generated, events attended, speaking opportunities, training, market access. If it’s a professional body with an obvious business focus, keep the membership certificate and evidence of professional relevance.

6) Sponsorships and “pay-to-play” networking

Sometimes networking is packaged as sponsorship: you pay to sponsor an event, appear in a brochure, have your logo on signage, or get a speaking slot. Sponsorship can be more clearly a marketing expense than entertainment, especially if you receive advertising and brand exposure in return.

The tax treatment often hinges on what you’re actually buying. If the fee is largely for advertising (logo placement, mentions, website links, booth space), it can be treated like marketing. If the fee mainly buys hospitality (VIP seating, dinner, drinks, guest passes), some or all of it may be treated as entertainment and restricted.

Practical tip: Ask for a breakdown of what the sponsorship includes. If the organiser can separate advertising from hospitality, that can help you claim the advertising portion more confidently.

7) Costs of exhibiting or presenting

If you attend an event as an exhibitor—paying for a booth, table, display materials, banners, flyers, sample products, or lead-capture tools—those costs are usually straightforward business expenses because they’re directly tied to sales and marketing. Similarly, if you are speaking or presenting, costs that enable the presentation (such as materials, slide printing, demo equipment hire) typically have a strong business link.

Even so, be careful if the event includes lavish hospitality. An exhibitor pack might include “booth + networking dinner + open bar.” The marketing and exhibition element might be allowable, while the hospitality element might not be. Where possible, obtain itemised invoices.

Self-employed vs limited company vs employee: why structure matters

People often ask about networking expenses without specifying whether they’re self-employed, running a company, or employed. The underlying logic of business purpose is similar, but the consequences and reporting can differ.

Self-employed (sole trader) or partnership

If you’re self-employed, you are typically claiming expenses against your business income. The risk area is dual-purpose spending. A networking event that is clearly business-focused is easier to claim; meals and entertainment are often the first thing scrutinised. If a cost is disallowed, it increases your taxable profit.

Another common issue is “ordinary” vs “capital” spending. Most networking costs are ordinary day-to-day business expenses. But if you pay a large, one-off fee that gives you long-term benefits (for example, a lifetime membership or a significant initiation fee for an exclusive club), some systems might treat it differently. This is less common, but it’s a reminder that not all networking costs are the same.

Limited company (director-shareholder or incorporated business)

If you operate through a company, expenses are paid by the company and may reduce corporate profit. But there’s a second layer: if the company pays for something that is really personal benefit to you, it can be treated as a benefit-in-kind, a dividend, or a director’s loan issue, depending on local rules. That can create tax and reporting obligations even if the company is allowed a deduction (and in some cases, the company might not get a deduction either).

This is why company-paid entertainment often needs extra care. A company paying for client entertainment might face a restriction on deductibility, and a company paying for the director’s social club membership might create a personal tax charge for the director. The compliance burden can be bigger than for a sole trader.

Employees (claiming from employer or on a tax return)

If you’re an employee attending networking events, you generally have two possible routes: your employer reimburses you, or you pay and claim relief (if allowed) under employee expense rules. Many systems are stricter for employees: to claim tax relief, the expense may need to be wholly, exclusively, and necessarily incurred in the performance of your duties (not just helpful for career development). Networking that benefits your professional profile but is not required for your role may not qualify.

However, if your employer requires you to attend, or the event is an integral part of your work (for example, you attend trade events as part of business development duties), reimbursement is often straightforward. The employer will still apply their own policies about what is allowed and what receipts are needed.

What counts as “networking” in the eyes of tax authorities?

From a practical standpoint, tax authorities often don’t have a special “networking” category. They see a transaction and classify it as training, marketing, travel, subsistence, entertainment, staff welfare, or something else. That classification determines deductibility.

That means you’ll be more successful if you describe the expense in a way that reflects its true business category. “Networking event” is vague. “Industry conference registration,” “trade show entry fee,” “exhibitor booth rental,” or “professional association annual membership” are clearer and easier to defend. Conversely, “drinks with contacts” is almost guaranteed to trigger entertainment questions.

Think in terms of the business function served:

Learning and professional development: conferences, seminars, workshops (generally easier).

Marketing and lead generation: trade shows, exhibitions, sponsorship, promotional materials (often easier).

Relationship management: meals, hospitality, social events with prospective or existing clients (often restricted).

Staff-related events: internal team networking, staff conferences, staff parties (can be treated differently from client entertainment).

How to evidence the business purpose (without overcomplicating it)

Most networking events feel obvious in the moment, but six months later, a receipt alone won’t explain why you spent the money. Good records turn a questionable claim into a defensible one. You don’t need a novel—just enough to show intent and relevance.

Useful evidence includes:

Receipts and invoices: Ideally itemised, showing what was purchased.

Event details: Agenda, event webpage, email invitation, speaker list, or program.

Business notes: A short note in your expense app or accounting software: “Attended FinTech founders meetup; met 3 prospects; follow-up scheduled.”

Attendee information: Names, companies, and reason for meeting—especially for hospitality claims.

Follow-up actions: Emails setting meetings, proposals sent, leads entered into CRM.

A simple habit is to add a one- or two-sentence note at the time you submit the expense. That note becomes your future memory, and it’s usually enough to demonstrate that the cost was incurred for business.

Grey areas and common pitfalls

Mixing business with pleasure

Many networking events are enjoyable. Enjoyment alone doesn’t disqualify a claim, but it increases scrutiny. A cost is more likely to be challenged if the event is inherently recreational: sporting events, concerts, luxury dining experiences, golf days, or holiday-style retreats. These may be framed as “networking” by organisers, but tax rules often treat them as entertainment.

Even if you can prove you talked about business, the nature of the event can still control the classification. When in doubt, assume that hospitality-heavy events are high risk for deductibility, and look for ways to separate the business element (for example, conference fee) from the entertainment element (dinner, drinks, VIP package).

Bringing guests

Taking a spouse, partner, or friend to a networking event is a classic trap. Unless the guest has a genuine business role in your business (for example, they are an employee attending as part of their duties), the guest-related cost can look personal. Even if you say “it helped me feel confident” or “it improved conversation,” that’s not usually a business necessity in tax terms.

If the ticket is per person, the guest ticket is often disallowed. If the cost is shared (like a hotel room), the incremental cost caused by the guest is usually the problem. Paying the guest portion personally is often the cleanest approach.

Claiming clothes or grooming for networking

People sometimes ask whether they can claim a new suit, dress, shoes, hair styling, or cosmetics for a networking event. In many places, ordinary clothing is treated as personal, even if you only wear it at work events. There are exceptions for protective gear and specialist uniforms, but “smart business attire” typically doesn’t qualify.

So while the event ticket might be allowable, your outfit for the event often won’t be. This can feel unfair, but it’s a widely applied principle: clothing keeps you warm and presentable in personal life too, so it has an inherent personal purpose.

“It led to business later” isn’t always enough

Another common misconception is: “I got a client from this, so it must be deductible.” Outcomes help your narrative, but deductibility is about the nature of the expense and the rules that apply to that category. A lavish dinner that wins a contract might still be treated as disallowed entertainment. A personal trip that happens to include a short business meetup might still be treated as non-deductible travel.

That said, documenting business outcomes can support borderline cases and demonstrate genuine commercial intent.

Lavishness and reasonableness

Even when an expense type can be deductible, extremely lavish spending can undermine your position. Many tax systems include an implicit or explicit reasonableness concept. If the scale of spending is out of proportion to your business, it can attract attention and challenge.

Think about what is normal in your industry and in the context of your business size and revenue. A small freelance consultant expensing premium hospitality every week is likely to raise questions. A large corporate sales team with documented client entertainment policies may have a different risk profile.

Examples: when networking expenses are more likely to be claimable

Here are scenarios that are generally easier to justify as business expenses (subject to local rules):

Industry conference registration: You attend a two-day conference relevant to your services, with speaker sessions and workshops.

Trade show entry: You attend a trade show to meet suppliers, research competitors, and collect leads.

Exhibitor booth: You pay for a stand and marketing materials to showcase your product.

Professional association membership: You join an association that supports your profession and provides industry resources and events.

Business travel to an event: Train fare and hotel for an overnight stay to attend a business-focused event, with receipts and an agenda.

Minimal refreshments as part of a formal event: Coffee and snacks included in a training seminar fee (often treated as part of the event cost).

Examples: when networking expenses are more likely to be restricted or disallowed

These scenarios commonly fall into entertainment or personal benefit categories:

Sporting event hospitality package: You take prospects to a premium sports event “to network.” This is often treated as entertainment even if business is discussed.

Luxury dining “networking dinner”: The event is mostly about a meal and drinks with minimal business content.

Social club membership: You pay for a private members’ club where you sometimes meet contacts, but it also provides personal leisure benefits.

Partner attending as a guest: You buy two tickets but only one attendee has a business role.

Clothing and grooming: You buy a new outfit “for networking.” Usually personal.

Weekend retreat with limited business content: The trip looks like a holiday with a short networking session tagged on.

How to split mixed-purpose costs

Sometimes a single expense includes both business and non-business elements. Splitting can be allowed or expected, depending on the rules and how clearly separable the costs are. Common split scenarios include:

Business trip with extra leisure days: You may be able to claim the business travel portion and the accommodation for business nights, but not the leisure extension.

Package tickets: A conference package might include a training day plus an evening entertainment event. If itemised, you can sometimes claim the business portion and exclude the entertainment portion.

Sponsorship that includes advertising plus hospitality: If the organiser can separate advertising benefits from entertainment, you may claim the advertising and disallow the hospitality.

If costs can’t be sensibly split—because the event is fundamentally entertainment—then splitting may not help. But where the split reflects real, distinct components, itemisation is your friend.

Practical bookkeeping: how to code networking expenses

It’s tempting to lump everything into a single “Networking” category in your accounts, but that can obscure the true nature of costs. A better approach is to code expenses based on what they are:

Training and conferences: registrations, workshops, seminars.

Advertising and marketing: sponsorships (advertising portion), booth fees, promotional materials.

Travel: transport, mileage, parking, accommodation for business trips.

Subsistence: meals while traveling for business (if allowed where you are).

Entertainment/hospitality: client meals, drinks, and hospitality (often tracked separately because of restrictions).

Separating these categories helps you apply the correct tax treatment and makes your records clearer if questions arise later. It also helps you understand your true cost of business development: if entertainment is restricted, you can still track it for commercial insight while handling tax correctly.

What if the organiser calls it a “networking event”?

Event marketing language isn’t determinative. An organiser can call anything “networking” if it helps sell tickets. Tax treatment depends on substance over labels. A breakfast briefing with a speaker and structured introductions is different from a cocktail party with an open bar, even if both are described as networking.

When judging substance, consider:

Is there a structured business agenda (talks, panels, workshops, facilitated introductions)?

Is the audience primarily businesspeople attending for professional reasons?

Is the setting professional (conference venue, trade show hall) or recreational (sports arena hospitality, nightclub, luxury resort)?

How much of the cost is for hospitality versus content or access?

The more the event resembles training, industry development, or marketing, the more defensible it is. The more it resembles entertainment, the more likely restrictions apply.

Frequently asked questions

Can I claim the cost of a networking breakfast?

If the breakfast is part of a business event with a clear professional purpose, the entry fee may be claimable. If you’re simply meeting someone for breakfast, it may be treated as hospitality or entertainment depending on your local rules. If you are traveling for business and the breakfast is subsistence, it may be easier to claim. Document the context and keep receipts either way.

Can I claim drinks after an event?

Drinks after an event are commonly treated as entertainment or hospitality when they involve others, and may be restricted. If they are simply your own refreshment while traveling for business, it may fall under subsistence, but many systems still apply limits. If you’re planning to claim, keep it modest and keep a note of the business reason.

Can I claim a coworking space event that includes food and beer?

Often, the membership fee or event fee can be claimable if the coworking community is used for business and the event is business-focused. The included food and beer may be incidental, but if the event is essentially a social gathering, it may be viewed as entertainment. If the invoice is itemised, treat components appropriately.

Can I claim expenses for online networking events?

Virtual events can be simpler because they often look like training or access fees rather than hospitality. Tickets for online conferences, webinars, and paid communities are frequently easier to justify, especially if the content is relevant and the purpose is professional. If you buy snacks or a “virtual tasting kit” to participate, that may reintroduce hospitality issues.

Can I claim the cost of giving out freebies at a networking event?

Promotional items like branded pens, brochures, sample products, or small giveaways are usually considered marketing. However, expensive gifts can have their own rules and limits. Keep evidence that the items were promotional and distributed for business purposes.

A simple decision checklist

If you want a quick way to sanity-check whether a networking expense is likely to be claimable, run through these questions:

1) What is the expense really for? Ticket, travel, training, marketing, or hospitality?

2) Is the primary purpose business? Would you still have gone if there were no business benefit?

3) Is there a personal element? Guests, leisure activities, luxury upgrades, or mixed-purpose travel?

4) Does your jurisdiction restrict entertainment? If yes, treat hospitality as high-risk or non-deductible unless clearly exempt.

5) Do you have evidence? Receipt, agenda, attendee details, and a short business note.

6) Is it proportionate? Does the cost make sense for your business size and industry norms?

How to make your networking expenses more defensible

You don’t need to avoid networking; you just need to structure it sensibly. Here are practical steps that often reduce ambiguity:

Choose business-led formats: Conferences, trade shows, workshops, and structured meetups tend to be clearer than hospitality-only events.

Get itemised invoices: Especially for packages, sponsorships, and events with dinner or drinks included.

Separate personal spending: Pay personal add-ons yourself rather than pushing them through the business.

Record the “why” immediately: Add a note to the transaction with who/what/why.

Use consistent categories: Track training, travel, marketing, and entertainment separately in your bookkeeping.

Set a simple internal policy: Even if you’re a one-person business, decide what you will and won’t claim (for example, “conference fees and travel yes; client entertainment only if pre-approved and modest”). Consistency reduces risk.

Final thoughts

Yes, you can often claim expenses for business networking events—but the answer depends on what the expense actually represents. Entry fees to business-focused events and the travel needed to attend them are commonly claimable when properly documented. The closer an expense gets to hospitality and entertainment—meals, drinks, VIP packages, social events—the more likely restrictions apply, even if valuable conversations happened.

If you want to stay on the right side of the line, treat networking costs like any other business expense: be clear about the business purpose, avoid personal elements, keep evidence, and categorise correctly. And when a cost looks like it might be mostly entertainment, assume it’s a higher-risk claim and either exclude it, split it with proper itemisation, or get advice specific to your situation and location.