The Low Incomes Tax Reform Group (LITRG) has concluded that employees can claim tax relief on ultra-low emission zone (ULEZ) charges, if they are undertaking qualifying business travel when the charges are incurred. LITRG summarises its view as follows: ‘If your employer reimburses a charge that you incurred whilst on business travel, there is no tax or National Insurance to pay on the reimbursement.
‘If your employer does not reimburse the charge, or only reimburses part of it, you can claim tax relief. This will reduce the income on which you have to pay tax. Sadly, this is not the same as receiving full reimbursement.’
LITRG notes however that, following the usual income tax rules, tax relief is not available for ULEZ penalties (on the basis that penalties would not be incurred for business purposes).
HMRC sets out a summary, signposting its guidance on travel expenses for employees, in its Employment Income Manual at EIM31820, although the guidance does not currently specifically cover ULEZ charges.
The Low Incomes Tax Reform Group (LITRG) has concluded that employees can claim tax relief on ultra-low emission zone (ULEZ) charges, if they are undertaking qualifying business travel when the charges are incurred. LITRG summarises its view as follows: ‘If your employer reimburses a charge that you incurred whilst on business travel, there is no tax or National Insurance to pay on the reimbursement.
‘If your employer does not reimburse the charge, or only reimburses part of it, you can claim tax relief. This will reduce the income on which you have to pay tax. Sadly, this is not the same as receiving full reimbursement.’
LITRG notes however that, following the usual income tax rules, tax relief is not available for ULEZ penalties (on the basis that penalties would not be incurred for business purposes).
HMRC sets out a summary, signposting its guidance on travel expenses for employees, in its Employment Income Manual at EIM31820, although the guidance does not currently specifically cover ULEZ charges.
