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Q: We have just paid the parking fine of a company car driver and now wish to deduct it from his wages. Can we?
A: You may do this only if you have written consent of the employee. Surely it would be better to make clear in your rules that employees pay their own fines. Ownership of the vehicle is immaterial.
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3 Responses
You may be stuck with car fine
You would only be able to offset if you have some form of statement to that effect in your company car and or expenses policies.
Also if you have made the payment without first allowing the employee the option to contest the fine you may have de facto assumed responsibility for it (unless covered by policy which the employee has freely accepted).
As the licensed keeper you would normally have had the option of either paying the fine OR advising the issuing authority of the identity of the driver and thereby seeking to pass on the liability.
Parking Fines
If you don’t deduct it from net pay you should either include it as gross pay for tax and NI if the payment was made to the employee or on P11D if made to the authority and I believe that in that case class 1 NIC is still due!
Cannot deduct from wages, but can from expenses!
You cannot deduct from wages (Wages Act!) without consent, but I see no reason why you cannot deduct from any expenses they are claiming.