Ulez tax loophole: reclaiming daily charge tax

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【Summary】Self-employed tradesmen driving non-compliant vehicles in London's Ulez can claim back the £12.50 daily charge as a business expense on their tax returns. The Ulez scheme is expanding to cover all London boroughs, imposing the charge on drivers. Exemptions and grace periods have been offered to certain eligible drivers since the scheme's introduction in 2019.

FutureCar Staff Aug 29, 2023 4:18 PM PT

Ulez tax loophole: reclaiming daily charge tax

London's ultra-low emission zone (Ulez) is causing concern for self-employed tradesmen who drive vehicles that do not comply with the regulations. However, there may be a way for these tradesmen to recoup the money spent on the clean air levy. They could potentially claim the Mayor's fee as a business expense when they file their annual tax return.

Sadiq Khan's Ulez scheme, which has been the subject of controversy, is expanding to cover all London boroughs starting today. This means that drivers across the city will now be faced with a daily charge of £12.50.

Fortunately, tradesmen who are required to pay this fee may have some relief. By treating the fee as a business expense, they could potentially reduce their tax liability. This could be a significant benefit for tradesmen who rely on their vehicles for work.

Since the Ulez scheme was introduced by the Mayor in 2019, there have been a few exemptions and grace periods made available to certain eligible drivers. Disabled people, charities, and small businesses are among those who qualify for these exceptions. However, it is important for tradesmen to understand the specific rules and requirements in order to take advantage of any available benefits.