Self-employed and employed drivers can claim expenses / tax relief for congestion charges when travelling into clean air zones in all cities across the UK, including the newly extended Ultra Low Emission Zone (ULEZ) charge in London – as long as they are engaged in qualifying business travel at the time the charges are accrued.
The ULEZ charges will be in effect for all London boroughs from 29 August 2023, at a rate of £12.50 per day. Vehicles falling short of compliance and paying the ULEZ fee include:
- Petrol cars and vans not meeting Euro 4 standards (typically vehicles produced and registered with the DVLA before 2005).
- Diesel cars and vans not conforming to Euro 6 standards (generally equivalent to vehicles registered prior to 2015).
- Motorbikes failing to meet Euro 3 standards (essentially equivalent to bikes registered before 2007).
Self-employed individuals operating as sole traders or partners are eligible to claim tax relief on business travel expenses, encompassing low emission zone charges.
These travel expenses must have been incurred solely and exclusively for the purpose of the trade. Business travel encompasses journeys to and from clients or suppliers, as well as commutes to and from a workplace.
At the moment, London, Birmingham and Bristol have Class D clean air zones, meaning they include private vehicles.
Bradford, Bath, Sheffield and Tyneside have Class C clean air zones, which include light goods vehicles such as vans.
You can check if you’ll need to pay the London ULEZ charge by visiting the TfL website and provide your vehicle registration number.
