As Mayor of London, Sadiq Khan defended the expansion of the Ultra Low Emissions Zone (ULEZ) across the whole of greater London today with many dissenters, HMRC has confirmed that self employed and employees that pay this charge wholly in connection with their trade will be able to reclaim the cost as part of business expenses and for employees also if their employer does not refund these expenses.
Qualifying, newer vehicles will not have to pay the ULEZ daily charge but vehicles that are non-compliant will pay at least the standard charge of £12.50 per day with a higher charge for non-compliant vehicles over 5 tonnes.
Warning on Travel
This follows HMRC’s stance for other vehicle expenses
Comment
Do not fall foul of this. You can offset ULEZ, parking and travel expenses when the journey is solely in connection with trade e.g., driving from your place of work to a client’s premises and back to your place of work is allowable but a commute from your home to your place of work or a commute from your home to your client’s premises should only be claimed for additional travel costs or other expenses that exceed your normal commute costs to and from your place of work.