Put parking fine through LTD Co?

[JapanRed]

Hi all,

Can I legitimately pay a parking fine from my limited company’s bank account? I was on business when I incurred the fine and can prove it should HMRC ask.

[Zoon]

JapanRed said:

Hi all,

Can I legitimately pay a parking fine from my limited company’s bank account? I was on business when I incurred the fine and can prove it should HMRC ask.

Can you not pay it personally and claim it back on expenses?

[JapanRed]

Zoon said:

JapanRed said:

Hi all,

Can I legitimately pay a parking fine from my limited company’s bank account? I was on business when I incurred the fine and can prove it should HMRC ask.

Can you not pay it personally and claim it back on expenses?

Well that depends on whether it’s a legitimate expense, which is what I’m asking...

Would be easier to just pay using the company current account though wouldn’t it? No messing about claiming back then.

[anonymous-user]

Where the fine is paid from is one thing

Where the liability rests is another

https://www.gov.uk/hmrc-internal-manuals/business-...

[anonymous-user]

JapanRed said:

Well that depends on whether it’s a legitimate expense, which is what I’m asking...

Would be easier to just pay using the company current account though wouldn’t it? No messing about claiming back then.

It isn't a legitimate expense

From the same link as previous

[JapanRed]

JPJPJP said:

Where the fine is paid from is one thing

Where the liability rests is another

https://www.gov.uk/hmrc-internal-manuals/business-...

Thanks that’s very interesting and probably answers my question. But, I don’t understand what it’s trying to say...

Just for clarification, I’m the sole director of my ltd co, and no one else works for the co.
The fine was affixed to my car window when I wasn’t present.
I own the car personally and just claim a mileage allowance.

Thanks again guys.

[Eric Mc]

Fines and costs related to breaches of the law are generally not allowable for tax deduction purposes. So, if the fine was picked up in the course of a business related journey, the company could include the cost in its profit and loss account as an expense.

However, that cost would need to be disallowed in the business tax calculation.

[JapanRed]

Thanks Eric and JPJP for the prompt answers to my question.
I will pay the fine personally.

Rob

[anonymous-user]

What if it were a private parking charge, which is contractual rather than statutory?

[anonymous-user]

janesmith1950 said:

What if it were a private parking charge, which is contractual rather than statutory?

AIUI then it couldn't be referred to as a fine and would be treated as any other contractual charge for parking a car: i.e. fully deductible and legitimate business expense.