Massive Ulez loophole exposed as it’s revealed which drivers can claim back the daily £12.50 charge against tax

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

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.

It comes as Sadiq Khan’s controversial plans for expansion are set to come into effect on tomorrow, covering all of the capital’s 32 boroughs.

Frustrated drivers have been vocal in speaking out about their discontent with the ULEZ.

But there could be some good news on the cards for a select number of motorists.

The Greater London Authority have 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

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 who businesses will be hit by the ULEZ charge."

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

Sadiq Khan is offering grants up to £2,000 to those who ditch motors that fail to meet the ULEZ emission standards.

But only roadworthy vehicles are eligible, meaning drivers may have to fork out to get broken motors fixed before they go in the scrap heap.

Cars eligible for a £2,000 grant if scrapped need to have valid MOT and road tax.

Other requirements from Transport for London (TfL) are that the vehicle must have been owned for at least 12 months and registered at the recipient's home address.

To manage the ULEZ zone, TfL uses multiple cameras located all around the capital to monitor which cars enter and exit.

These cameras record your number plate and then check it against their database to see if your motor needs to be charged for entering the ULEZ.

ULEZ was introduced in 2019 in order to address air pollution in central London.

It originally operated in the congestion charge zone only, before being widened out to the North and South circular roads in 2021, making the charging zone 18 times bigger according to the RAC.

The scheme runs 24 hours a day, seven days a week and aims to improve the health of people by reducing the amount of particulate matter and nitrous oxides they breathe.

Older vehicles, including motorbikes, that don’t meet the tighter emissions standards have to pay £12.50 every day they are used within the ULEZ.

Drivers can check whether their vehicle meets the emissions standards on TfL's website by entering in their registration number.