The Ultra Low Emission Zone (ULEZ) has been rolled out across London. This initiative aims to reduce air pollution in the city by discouraging the use of high-polluting vehicles. The ULEZ operates 24 hours a day, 7 days a week, and covers the same area as the Congestion Charge zone. Vehicles that do not meet the required emission standards will have to pay a daily charge to enter the ULEZ. This move is expected to significantly improve air quality in London and protect the health of its residents.
In a statement HMRC said: “Self Assessment customers are entitled to tax relief on travel expenses, including low emission zone charges, if they have been incurred wholly and exclusively for the purposes of the trade.
“When a self-employed individual claims an allowable expense, the amount is deducted fully from their taxable profits.”
A spokesperson for Transport for London (TfL) said: “Rules around tax deductible expenses will apply in the usual way to Ulez charges.
“This is a matter for HMRC but it is likely to depend upon the nature of the operation and circumstances around incurring the charge as to whether it is tax deductible, as is the case for other expenses“.