Ulez tax refund: recovering money from the £12.50 charge

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【Summary】Self-employed tradesmen in London can claim back the £12.50 daily charge for the ultra-low emission zone (Ulez) on their tax returns. The Ulez scheme is expanding to cover all London boroughs, and drivers will be subject to the charge. However, certain exemptions and grace periods are available for eligible drivers, including disabled people, charities, and small businesses.

FutureCar Staff Aug 31, 2023 4:46 PM PT

Ulez tax refund: recovering money from the £12.50 charge

London's ultra-low emission zone (Ulez) has caused concern among 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 clean air levy through their tax returns.

The Ulez scheme, introduced by Mayor Sadiq Khan, is expanding to cover all London boroughs starting today. This means that drivers across the city will now have to pay a daily charge of £12.50.

Fortunately, tradesmen who are required to pay the Mayor's fee may be able to claim it as a business expense when they submit their annual tax return. This could provide some relief for those who are impacted by the Ulez charges.

Since the Ulez scheme was first implemented in 2019, a few exemptions and grace periods have been put in place for certain eligible drivers. These exemptions include disabled people, charities, and small businesses. These drivers are given some leeway in complying with the Ulez regulations.