Yes, they can. Grossly unfair and morally completely wrong, but they can because the law was changed to benefit them as from October 2012. However, in court Parking Eye will have to prove that your action caused sufficient disruption and inconvenience to other parkers to have actually cost them the amount of the penalty demanded. Or they will have to simply impose a 'parking charge' which must then include itemised VAT or will render Parking Eye subject to prosecution by HMRC for evading tax.