.png)
.png)
Last year, while in the capital on business, I hired a car and failed to pay the London congestion charge. The fine was £50 which was charged to the hire company and paid by it.
The hire company then kindly sent me an invoice which slapped a £35 'administration fee' onto the original congestion charge (in accordance with the hire terms). The hire company has then gone on to charge VAT on the total amount of £85. Is it right to do this?
Last year while in the capital on business I hired a car and failed to pay the London congestion charge. The fine was £50 which was charged to the hire company and paid by it.
The hire company then kindly sent me an invoice which slapped a £35 'administration fee' onto the original congestion charge (in accordance with the hire terms). The hire company has then gone on to charge VAT on the total amount of £85. Is it right to do this?
And perhaps more importantly what if any elements of this can I reclaim as input VAT and claim as a deduction against income tax in my business accounts?
Query T16 964 — Alpha Romeo.
Reply by Neil Warren (author of Tolley's VAT Planning 2006/07):
The query raised by Alpha Romeo raises the interesting subject of VAT and disbursements.
A disbursement occurs...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
