bus lane fine, tax deductable or not?

londonTiger

On route to client visit which was wholly for business purposes I was in a rush and just followed the satnav down a bus only road and got slapped with a £65 fine.

Was curious if the tfl fine was tax deductable or not. The information I got from the accountant was that if it is a statutory fine then it needs to be treated as a drawing. If it's a civil penalty from the council then it is deductable.

So not sure where tfl fines sit.

phill99

I'd be surprised if it was tax deductible. It would effectively mean the public purse contributing towards your fines.

System

As it is a statutory fine then the answer is no

CKhalvashi

Definitely not.

I dont believe that PCNs are deductible either, as there's no supply of goods or services.

CK

System

http://www.hmrc.gov.uk/manuals/bimmanual/bim42515.htm

Mistral001

CKhalvashi wrote: »

Definitely not.

I dont believe that PCNs are deductible either, as there's no supply of goods or services.

CK

CKh I am not sure about the PCN's. Private car park "fines" are not fines or penalties although they are commonly referred to as such. According to the HMRC link that !!!!!! has given it seems that only fines or penalties are disallowed. Private car park "fines" are actually claims for liquidated damages for breach of contract, so might be tax deductible. But not absolutely sure.

CKhalvashi

Mistral001 wrote: »

CKh I am not sure about the PCN's. Private car park "fines" are not fines or penalties although they are commonly referred to as such. According to the HMRC link that !!!!!! has given it seems that only fines or penalties are disallowed. Private car park "fines" are actually claims for liquidated damages for breach of contract, so might be tax deductible. But not absolutely sure.

Sorry Mistral, I define PCN as Penalty Charge Notice, issued by a statutory body with the legislation to make them stick.

Parking Charge Notices (which aren't the same thing) would be I'd have thought for the reasons you mention above.

My fault for not defining the two.

CK

londonTiger

thanks for the tips. I wasn't sure whether the tfl fine was statutory or civil. Accountant wanted £150 to upgrade remit of work in order to tell me whether the parking fine was statutory or civil.

londonTiger

phill99 wrote: »

I'd be surprised if it was tax deductible. It would effectively mean the public purse contributing towards your fines.

That's their defence. But we all know bus lane violations are revenue generation and contribute to the public purse.

phill99

londonTiger wrote: »

That's their defence. But we all know bus lane violations are revenue generation and contribute to the public purse.

You evidently read the Daily Mail.

Bus lane fines are there to stop and deter people like you using them. If we didn't have deterrents, on such things as bus lanes, yellow box junctions, etc, there would be no point in having them and London would be even mire grid locked than it is.

I for one would strongly object to any fines being tax deductible. I am not willing to pay for your incompetent driving.

Bantex_2

londonTiger wrote: »

That's their defence. But we all know bus lane violations are revenue generation and contribute to the public purse.

They are voluntary though.