Actually parking tickets aren’t a tax deductable expense Simon. Even if they were do you think it’s any more palatable to know that by paying £60 to the council you’ve cut your tax bill by £15? Anyone invoicing their customers extra to cover a parking ticket should be aware that while their charge to the customer is taxable income, the parking ticket isn’t a deductable expense. So if you get a parking ticket for £60 and charge your customer £60 you’re deemed to have made an extra £60 taxable profit.

What’s even more bizarre is that if an employee is HANDED a ticket for a company owned vehicle and the company subsequently pays the ticket then the company has to include the parking ticket payment in the employee’s gross pay as taxable income subject to NI & PAYE. If the same ticket is attached to the vehicle then the company can pay it without accruing any further liability.

Posted under Courier Basics, Courier Financial Issues, Legal Issues, Parking Tickets, Uncategorized

Posted by Alec at 2:42 pm, August 15, 2006

2 Comments so far

  1. Alec added on  August 15th, 2006 at 15:54

    Simon, I doubt that any tax office is likely to agree that they’re tax-deductible, since HMRC (or the IR as it was then) went to considerable expense to successfully fight a series of court cases and appeals to prove that fines aren’t tax-deductible, whether or not they’re incurred ‘wholly and necessarily’ in the course of business.

    The final ruling was: “Its purpose is to punish the taxpayer and a court may easily conclude that the legislative policy would be diluted if the taxpayer were allowed to share the burden with the rest of the community by a deduction for the purposes of tax.”

    However last month in a High Court ruling concerning parking tickets and their alleged contravention of the Bill of Rights it was ruled that “…”the Bill of Rights does not apply to parking as there is no conflict. Parking Tickets are not fines.”

    This case is now going to the Court of Appeal. If the current ruling is allowed to stand then there would be a strong case if anyone was to challenge again whether parking tickets should be tax-deductible. Put simply, if they’re not fines the previous rulings on whether they’re tax-deductible or not wouldn’t be relevant.

  2. Alec added on  August 16th, 2006 at 09:58

    It doesn’t make any difference Simon, something is either an allowable business expense or it isn’t; and fines aren’t.

    It’s not your accountant that makes or applies the rules, but they are meant to advise you on how to stay on the right side of the law

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