Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration
Home Saved articles Viewed items Login Contact Free Trial Advertise View virtual issue View online issue

VAT a surprise

28 February 2007
Issue: 4097 / Categories: Forum & Feedback

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?

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon