Many groups run a small ‘members raffle’ to raise funds to cover variable costs such as refreshments, taster evenings and award prizes.
These are classed as “incidental lotteries” and do not require a licence.
As this is a private arrangement, the monies received (income) or paid out (expenses) do not appear within your business accounts as it’s not the business which is handling this, but instead a separate entity.
However, on occasion where your business – you as the self employed individual – incurs costs replenishing refreshments or awards (for example, if there are not enough member funds to cover these), these can be claimed as eligible expenses.