ULEZ Help for Small Businesses: How to Pay Less
In the bustling urban environments around London, the concept of an Ultra Low Emission Zone (ULEZ) has become a significant part of city life. While the primary aim of ULEZ is to reduce air pollution, it can feel like an additional burden for small businesses and individuals who live in the capital or have to travel there regularly.
In this blog, we share our ULEZ help for small businesses, assisting you in navigating the world of ULEZ and finding ways to pay less while still being environmentally responsible. We'll look at vehicle and route choices, as well as how you can make savings via your tax deductions.
Understanding ULEZ: What You Need to Know
ULEZ stands for Ultra Low Emission Zone. First introduced in 2019, its aim is to improve air quality in urban areas by discouraging high-emission vehicles from entering specific zones. Initially, ULEZ was applied to just distinct parts of inner London. However, on 29th August 2023, it was expanded to cover all London boroughs (not including the M25).
If your small business or personal vehicle doesn't meet the stringent emission standards, you will need to pay the £12.50 daily charge. The charging times operate 24 hours a day, every day of the year, except Christmas Day.
Residents in the area are not excluded from this charge and even have to pay when making short trips. However, if your vehicle is parked and you do not drive it that day, you are not required to pay.
For small business owners operating within London or visiting frequently, these fees can add up quickly and significantly impact your bottom line.
Helping Small Businesses Thrive in ULEZ Zones
At Keith Graham, we appreciate the importance of managing costs, especially for small businesses. Below, we share our ULEZ help for small businesses that can help you pay less when operating in these areas:
Upgrade to Low-Emission Vehicles
Consider investing in vehicles that meet ULEZ emission standards. While this may involve an initial investment, it can lead to long-term savings through reduced fees and improved fuel efficiency. Cars exempt from ULEZ charges include fully electric vehicles, hybrids, and some petrol and diesel cars that meet Euro 4 or Euro 6 standards.
Explore Alternative Transportation
Consider public transportation, carpooling, or cycling options where possible. ULEZ fees can add up quickly, so reducing the number of times your vehicle enters these zones can lead to significant savings.
Plan Routes Carefully
Use technology and route planning tools to optimise your journeys. With the expanded ULEZ area, it may be tricky to avoid charges when visiting London. However, if your destination is outside of London, yet your route passes through it, it is worth reviewing alternatives to see how you can minimise these fees.
Tax Deductions
Consult with your trusted accountancy firm to explore potential tax deductions related to ULEZ fees. Depending on your business structure and circumstances, you may be eligible for deductions that can offset these costs.
Regular Vehicle Maintenance
Keep your vehicles well-maintained to ensure they operate at their most efficient levels. A well-maintained car is less likely to emit pollutants and may be less subject to ULEZ fees.
Working Together for a Greener Future
While ULEZ may seem like a challenge for small businesses, it's essential to recognise its role in creating healthier urban environments. By implementing the strategies mentioned above and staying informed about ULEZ policies, you can both reduce your costs and contribute to the broader goal of improving air quality.
At Keith Graham, we're dedicated to helping our clients thrive in ever-changing business landscapes. Our team of experts is here to provide personalised advice and support to help you make informed financial decisions, including navigating the intricacies of ULEZ.
If you have any questions or need assistance with managing ULEZ-related expenses, please don't hesitate to get in contact with our team.