Parking Ticket

[arcon5]

Hello,

I am a taxi driver in Lincolnshire, a few weeks ago got a parking ticket.

Just wondering, can I claim for the parking tickets in my accounts ?

Thanks

[MyAccountantOnline]

Sadly not - parking tickets arent allowed for tax purposes as they are not incurred wholly and exclusively for the purpose of your trade. :(

To quote from one of the leading tax cases -

" 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."

[KidsBeeHappy]

Generally, anything illegal doesn't qualify for tax deductions :)
It's a good rule of thumb.

[dp0848]

I'm going to disagree slightly. I read somewhere (but I can't for the life of me remember where) that if the ticket is for parking on say a double line then it cannot be treated as a deductible expense for the reasons that Nicola has outlined. However if the ticket is for overstaying your time in a parking space / car park then it is deductible as it is viewed as a parking charge. I'll try to remember where I saw this and dig it out. It will be interesting to see what the other bean counters on here think.

David.

[adam]

What if you are delivering a vending machine and have to park on double yellows then get a ticket?

Often this can be charged back to the customer so do you have to charge them more to cover the tax that has been paid on the ticket?

[fisicx]

It depends on your local council restrictions. In general you can stop to load and unload but must move the vehicle as soon as you have unloaded/loaded.

[MyAccountantOnline]

I'm going to disagree slightly. I read somewhere (but I can't for the life of me remember where) that if the ticket is for parking on say a double line then it cannot be treated as a deductible expense for the reasons that Nicola has outlined. However if the ticket is for overstaying your time in a parking space / car park then it is deductible as it is viewed as a parking charge. I'll try to remember where I saw this and dig it out. It will be interesting to see what the other bean counters on here think.

David.

Hi David

Bean counters....!:(

Are you possibly thinking of the ability to recover VAT on such charges?:)

[David Griffiths]

The reason that fines are not allowable for tax is because it is "contrary to public policy" rather than the wholly and exclusively argument.

I think that David is right about the car parking situation. In most case the money is levied as an "excess charge" not as a fine. Provided that the parking was for the purpose of the business, the excess charges are also allowable.

I have some (fairly vague) recollection that courier and delivery companies have successfully claimed parking fines as an expense, because they simply can't operate in inner London, in particular, without incurring these costs. I don't think that argument will hold water for occasional fines in other cases.

[yorkshirejames]

Is this a parking ticket (issued by a council or the police) or is this a private parking invoice (issued by a private company, example euro car parks)?

If the latter, then I suggest you look at the forums at http://www.pepipoo.com - as the 'ticket' is likely to be wholly unenforceable.

If council, then to answer your question we would need to know what for. If you were collecting a disabled person and needed to park on double yellows outside their house, then I suggest that it is a legitimate business cost. Again look at pepipoo - it may be that you have valid grounds to appeal anyway.

I know of an example of a courier company who routinely appeal all parking tickets, and have something like a 90% success rate.

[Emcar Vending]

Parking Fines? Isn't that what the 'Sundry Expenses' category is for?

[dp0848]

Parking Fines? Isn't that what the 'Sundry Expenses' category is for?

I always code them to "Stationery" because the car was stationary when it got the ticket. :D;)

[KM-Tiger]

Or how about Bank Charges.

You can certainly bank on getting one if you deliver in Central London.

[tom applegate]

I agree with previous post. If it's for parking, then its for 'extended' parking - that's how i would list it anyhow. Just the same if you were in a multistory carpark, and got chaffed because your car was left in over night.