Sole traders can claim tax relief on ULEZ fees

Sole traders and self-employed taxpayers are entitled to claim tax relief on low emission zone charges including London’s ultra low emission zone (ULEZ) fee as long as they have been incurred ‘wholly and exclusively for the purposes of the trade’ HMRC has confirmed.

The ULEZ was expanded across all London boroughs on 29 August 2023. Drivers of vehicles that do not meet the emissions standards will have to pay a daily charge of £12.50 when they enter the area. This includes residents of the ULEZ.

Owners of non-UK registered vehicles also need to meet the ULEZ emissions standards or pay the daily charge to drive within the zone. Vehicles need to be registered with EPC plc even if they meet the emissions standards.

London residents with a vehicle that does not meet the ULEZ standards can apply for up to £2 000 for