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| Those who entered London's Ulez solely for business will be allowed to claim the cost. |
Drivers who are self-employed will be eligible for tax exemption on the daily Ultra Low Emission Zone (Ulez) fee.
Workers who traveled "exclusively for the purposes of the trade" may be able to make a claim in non-compliant cars.
On Tuesday, Ulez was extended to cover all of London's boroughs.
According to Craig Beaumont of the Federation of Small enterprises (FSB), "this is a shot in the arm for sole traders, whose businesses will be hit by the Ulez charge from today."
Self-employed individuals can use their self assessment tax return to claim tax relief on their travel expenses, including the costs associated with low emission zones.
Costs associated with non-business travel or commuting are not eligible for this form of tax relief.
According to a Transport for London (TfL) spokesperson, Ulez costs will be subject to the same tax deduction rules as other expenses.
"This is a matter for HMRC, but whether it is tax deductible, as is the case for other expenses, is likely to depend upon the nature of the operation and circumstances surrounding the incurring of the charge."
"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," HMRC stated in a statement.
A self-employed person's taxable profits are entirely reduced when they declare an acceptable expense.
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