You’ve probably had in the course of your business, a parking fine.
Your accountant has probably told you that they are not tax deductible. Which they are correct – they are not.
The good news though is that the VAT position is different, potentially, you can claim the VAT back on a parking fine.
It’s slightly tricky since most suppliers of parking fines won’t tell you whether VAT has been charged so here’s a guide:
VAT isn’t charged on fines from local authorities or other organisations if you park in breach of the terms and conditions so there’s nothing to reclaim. However, it is due on additional charges for overstaying. In this case, you can reclaim the VAT charged even if it’s not shown separately on a parking ticket.
If you are unsure, the best thing to do is to keep your parking fine and present it to your accountant to look into.
Russell Smith is an award-winning accountant and founder of RS Accountancy. With over a decade of experience running his company, he has worked with countless small businesses just like yours, helping them grow profits and manage their finances. Russell is also a prolific financial writer, having contributed to such publications as The Guardian, The Telegraph and The Daily Mail.