Client entertainment is not a tax-deductible expense if you’re a sole trader (or even if you formed a Limited Company). Unfortunately, after many years of business owners abusing their deductions and putting through personal entertainment costs as a business expense, HMRC has taken the approach to make all client entertainment a disallowable expense. In addition, you cannot reclaim any VAT if you are registered for VAT.
So, even if you are entertaining your clients for business reasons you won’t get tax relief. However, if you have a separate business bank account (which it is recommended you do by HMRC), you can pay for the cost of your client’s entertainment from this account to save you from using your personal money.