Ethical Dilemas

Jenny Chamberlain

When you are studying everything is black and white and solutions are easy to write down on paper. However out there is the big wide world it isn't so easy there is often a grey areas in between.

Some advice on the subject would be gratefully received such as if you become aware that personal expenses are being paid for by a company, pool cars are not actually pool cars, declaring you have no private petrol (the co. just pays for it all), work being conducted at home addresses but costed to other parts of the business.

They sound very minor on the face of it but the dilema is how big is the grey area??

deanshepherd

This seems black and white to me.

If you advise the client of the correct tax treatment and they ignore that advice then it is bye bye client and hello SOCA.

Psyche

If you did the Diploma pathway for AAT they have a unit on ethics, which I wish had been included in the NVQ. I was able to buy a used textbook from this forum. There are general principles, basically if something seems dodgy it probably is! The AAT also has an ethics helpline for members to call. I would say if in doubt just play it safe, the client may end up with a slightly higher tax bill but you will not risk your integrity and/or your licence!

A-Vic

There is a thing called a disclaimner that states you can only go off the books and records provided but in the end mr tax man will catch up they always do.

sarahwilson

What if this kind of thing is happening where you work rather than a clients? Personal cars petrol being charged to a pool car, etc? How would everyone handle that?

A-Vic

personally yes i would you do have an obligation to your employer and if you kept it to yourself doesnt that make you as bad not even worse as the person doing it?

sarahwilson

What if its your employer thats actually doing it? I work for a husband and wife shes my line manager and all his personal car petrol claims are put to her company pool car. Now I know thats not correct, admittedly I didn't when I started. Its not even a clever fiddle you can see from the screen that unless her car has a hole in the petrol tank theres no way it uses all that fuel in a month.

The stupid thing is shes an absolute stickler for everything else as well. What would you suggest?

farmergiles

Maybe the year end accountant adds back 50% for private use??

sarahwilson

Possibly but I dont think so, he is also filing mileage claims and being paid for them so somethings not right. Or am I being stupid?

American angel

Mileage

I may be a bit out of touch on this, but isn't it that if your vehicle is registered to the company, all petrol gets paid. If its a personal vehicle being used for company business, mileage gets paid?

American angel

Does your company have auditors come in? maybe you could point this out to them to bring up to the owners if you feel its not your place to do so?

Psyche

If a company provides private petrol AT ALL then there is a flat rate taxable as the benefit, it does not matter how much petrol is being used and how much is for personal/business use. So provided they are reporting the private petrol to the HMRC they are actually within the law on this one.

deanshepherd

If you were in practice you would report it to your MLRO. In your case, bring it up with your boss. That's where your responsibility ends.