Claim back tax on daily charge

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【Summary】Self-employed tradesmen in London can potentially claim back the £12.50 daily charge for driving vehicles that don't comply with the ultra-low emission zone (Ulez) through their tax returns. The Ulez scheme, which is expanding to cover all London boroughs, has exemptions and grace periods for certain eligible drivers, including disabled people, charities, and small businesses.

FutureCar Staff Sep 02, 2023 9:39 AM PT

London's ultra-low emission zone (Ulez) is causing concerns for self-employed tradesmen who drive vehicles that do not comply with the regulations. However, there may be a silver lining for these tradesmen, as they could potentially recoup the money spent on the Ulez charge through their tax returns.

Sadiq Khan's controversial Ulez scheme is expanding to cover all London boroughs starting today, subjecting drivers across the city to a daily charge of £12.50. This has caused frustration among many drivers who will now have to bear this additional expense.

However, tradesmen who are required to pay the Ulez charge may be able to claim it as a business expense when they submit their annual tax return. This could provide some relief for these individuals, as they can offset the cost against their taxable income.

Since the Ulez scheme was introduced by the Mayor in 2019, certain exemptions and grace periods have been implemented for eligible drivers. These exemptions include disabled people, charities, and small businesses, who are given some leeway in complying with the regulations.