Revenue refuses to pay congestion charge
The Inland Revenue says it will refuse to allow the congestion charges about to be introduced in London to be deducted from tax bills.
When Ken Livingstone’s new charges come into effect around central London from 17 February, motorists will not be able to claim the money back as a tax-deductible expense.
The Revenue said that it would treat such charges in the same way as it looks at Underground and rail fares and parking fees, which are not seen as allowable business expenses.
In the same way it is expected that most businesses located within the charging zone are also unlikely to reimburse employees who travel to work by car.