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Tax loophole may allow tradespeople to claim ULEZ charges

Posted: Wednesday, August 30th, 2023

A ULEZ loophole has been exposed after it was revealed that some drivers can claim back the daily £12.50 charge against tax, The Sun reported.

The policy, which charges drivers a fee to drive in London if their vehicle doesn't meet emissions standards, has seen a strong backlash since it was introduced.

But there could be some good news on the cards for those who are self-employed including tradespeople.

The Greater London Authority has now said that self-employed workers would be able to claim back the £12.50 charge as part of their tax return, according to the Financial Times.

Drivers will be able to do this if the journey was "an exceptional trip solely for business".

The loophole will come as a relief for traders who are worried about having to splash out to replace their vehicles.

HMRC added that employees would also be entitled to tax relief on the charges if they drive in the zone as part of their work. However, this does not include commuting to work.

Craig Beaumont of the Federation of Small Businesses said: "With the tax take at a 75-year high, it's rare to get good news from HMRC at the moment.

"This, however, is a shot in the arm for sole traders whose businesses will be hit by the ULEZ charge."

The loophole means that fewer drivers could trade in their cars for cleaner alternatives.

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