BTC Speeding Fine - allowable??

imeldabye

In the June 08 BTC model answers a speeding fine is allowed - however my text book clearly states that the only fine allowed would be a parking fine from an employee?
I know it's not going to appear on Tuesday but I am concerned that there might be a similar thing which if I am going on my text book I will get wrong...
I really really wish they told you how many marks you lose on errors like this. Do you think it is better to put in a note to the examiner explaining the dilemma?

garry_coombs

Just had a quick look at it and the question paper says

Speeding fines incurred by an employee 100

So it would be allowable as a business expense as it says employee not director

imeldabye

so is any fine allowable if it is from employee rather than director?

Bluewednesday

I was under the impression that only parking fines were allowable as employees and speeding fines were not allowable for employees or directors.

cs_1988

Hi,

I emailed the AAT over this, as my textbook clearly states the only legal fine allowable is a parking fine.

They emailed back saying as long as it is an employee's speeding fine it's ok.

Both my works Directors and tutor were puzzled!

Hope that helps

Chris

richards0l0

I agree with blue wednesday, its only parking tickets incurred by employees that are allowable, according to my Osborne book! speeding fines and others, regardless of being incurred by employees or employers are disallowable and therfore need to be added back, to the net profit, can anyone confirm this! or is the book wrong ???

Bluewednesday

Well that's Osborne and BPP that agree at least.

Looking at the HMRC website it is saying that a speeding fine would be allowable if assessed as a benefit for the employee, maybe that's what happened???

http://www.hmrc.gov.uk/manuals/bimmanual/BIM42515.htm