Help - tax confusion!

cathyncc
cathyncc Registered Posts: 3 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
Hi,

Hoping someone can help! I'm getting really confused over which fines for breaking the law are allowable expenses against taxable trading profits. I had it in my mind that the only allowable expenses were for employees' parking fines incurred whilst on business, but I've just seen a question where employees' speeding fines incurred whilst on business are allowed in the answer. Can anyone explain which fines are allowable expenses? Would appreciate any help on this! Thanks.

Comments

  • cs_1988
    cs_1988 Registered Posts: 231 Dedicated contributor 🦉
    Hi Cathryn,

    I did BTC and PTC in Jan, and actually contacted the AAT about this. My book stated only parking, but on a past exam they allowed speeding. Appartly you are meant to include them as allowable (only from employees though!)

    Stupid in my opinion, but thems the rules!
  • Moseley_21
    Moseley_21 Registered Posts: 59 Regular contributor ⭐
    I had it in my mind that any fines by employees were allowable.. however any incurred by directors were dis-allowed.. if anyone could give further clarity that would be excellent??
  • cathyncc
    cathyncc Registered Posts: 3 New contributor 🐸
    Tax confusion!

    Hi,

    Yes, that's what made me confused. The Osborne book says only parking fines for employees, but there was a past paper that allowed employees' speeding fines. Thanks for your replies guys!

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