Self-employed drivers are entitled to tax relief on London’s Ultra Low Emission Zone (ULEZ), which has been newly expanded to cover almost the whole of greater London. A Transport for London spokesperson said: “Rules around tax deductible expenses will apply in the usual way to ULEZ charges.”
HMRC confirmed that the relief is applicable to travel expenses “incurred wholly and exclusively for the purposes of the trade”. This means that self-employed people travelling in London purely in relation to their business should be able to offset the £12.50 daily cost of ULEZ against their tax bill.
Business travel includes journeys to and from customers or suppliers and to and from a workplace. Generally home to work travel will not qualify as a business journey if your home is not a business base/place of business.
If you’re self-employed and planning to claim, you can do so via your annual self assessment submission to HMRC. The relevant amount will be deducted from your taxable profit.