Self-Employed Drivers Can Now Claim ULEZ Tax Relief
Good news for self-employed drivers regularly entering the expanded Ultra Low Emission Zone (ULEZ). You can now reclaim tax relief on the daily £12.50 ULEZ charges. This relief eases the burden on those stuck with non-compliant vehicles.
Scrappage Scheme Misses Many Commuters
London Mayor 1 and Transport for London (TfL) introduced a scrappage scheme for London residents. But many commuters from bordering boroughs were left out, despite crossing into the ULEZ regularly for work.
HMRC Confirms Tax Relief for Work-Related ULEZ Charges
HM Revenue and Customs (HMRC) has stepped in with a breakthrough for self-employed drivers. They can now claim tax relief on work-related travel expenses, including ULEZ fees. The relief applies only if the journeys are “wholly and exclusively for the purposes of the trade.”
“Self Assessment customers are entitled to tax relief on travel expenses, including low emission zone charges if they have been incurred wholly and exclusively for the purposes of the trade. When a self-employed individual claims an allowable expense, the amount is deducted fully from their taxable profits,” said HMRC.
How to Claim and What Counts
Claiming the relief is done through the self-assessment tax return. Personal commutes or non-work travel do NOT qualify, confirms the BBC. TfL agrees, stating, “Rules around tax deductible expenses will apply in the usual way to ULEZ charges. It is likely to depend upon the nature of the operation and circumstances around incurring the charge as to whether it is tax deductible.”
This tax break offers a vital lifeline to self-employed drivers navigating costly ULEZ charges while staying compliant with emissions rules.
