Clean air zones and emissions charges have been introduced to improve air quality and reduce emissions in major cities. This includes London’s Ultra Low Emission Zone and congestion charge.
Make sure you don’t get caught out with extra charges if you drive for work. Find out which vehicles the charges apply to, and familiarise yourself with the rules so you aren’t hit with unexpected penalties.
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What is ULEZ?
The ULEZ clean air charges were introduced in London in 2019 to manage air pollution that causes environmental and health risks. It applies all year round, 24 hours a day, seven days a week (apart from Christmas day).
ULEZ map – see where the rules apply
This map shows where the ULEZ rules apply now.
Source: TFL
ULEZ check – do you need to pay the charge for your business vehicle?
You can use TFL’s vehicle check tool to see if your vehicle is exempt from the charge. You just need your car registration number to find out.
Typically, vehicles that don’t meet the emissions standards and have to pay the ULEZ charge are:
- petrol cars and vans that don’t meet Euro 4 standards (typically vehicles registered before 2006)
- diesel cars and vans that don’t meet Euro 6 standards (typically vehicles registered before 2015)
- motorbikes that don’t meet Euro 3 standards (sold before July 2007)
Electric vehicles (EVs) are exempt from the charge. Check other exemptions and grace periods with TFL.
How much is the ULEZ charge?
If you’re driving in the area and your vehicle doesn’t meet specific emissions and safety standards (typically older vehicles) then you have to pay £12.50 a day. You don’t have to pay if your car is parked in the zone on days you’re not driving.
There’s a penalty charge of £180 if you fail to pay by midnight on the third day following the journey, although this is reduced to £90 if you pay within 14 days.
You can use TFL’s congestion charge tool to check if the charges apply to your business vehicle.
How to pay ULEZ
You can pay the charge in a number of ways:
- pay online
- set up Auto Pay – this gives you the option to register up to five vehicles if your business regularly uses multiple vehicles, and you’ll be charged automatically so you won’t have to worry about forgetting to pay the charges
- TFL app – using the app you can set up to auto-pay, make payments, and view your balance
- by phone – call 0343 222 2222 to pay the charge over the phone
Claim tax relief on ULEZ charges
Small businesses driving in the capital will be able to claim tax relief on the daily ULEZ charge.
HMRC confirmed the charge will be classed as an allowable business expense. This means the self-employed can deduct the amount from their taxable profits and reduce the amount of tax they need to pay.
The relief only applies to journeys made for business purposes – and doesn’t include commuting.
Don’t forget about the London congestion charge
You’ll need to pay a congestion charge if you drive at certain times in central London.
Congestion charge times apply between 7am and 6pm during the week (Monday to Friday) and between 12pm and 6pm on weekends and bank holidays. Charges don’t apply between Christmas Day and the New Year’s Day bank holiday.
Check the congestion charge map on TFL’s website to see if charges apply. You’ll know if you’re in a congestion charge zone as there are signs showing a white ‘C’ in a red circle.
It costs £15 a day and can be paid for the same way as the ULEZ charge. TFL has more information on paying to drive in London.
EVs are eligible for a 25 per cent discount, reducing the fee to £13.50 a day.
Clean air zone cities across the UK
There aren’t any other ULEZ cities beyond London, but there are other cities with low emission zones in the UK.
Here are the main cities in the UK where clean air zones apply:
National exemptions apply if you have an eco-friendly vehicle that meets the low emissions standards. However, many of these cities also offer discounts or grants for small businesses located within the clean air zones.It’s also worth noting that you can claim these charges as a tax-deductible expense, provided the journey you made was solely for business purposes.
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