Congestion charge

Produced by Tolley in association with Philip Rutherford

The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Congestion charge
  • Introduction
  • The congestion charge
  • Reporting the benefit
  • Company vehicle
  • Employee vehicle ― business travel
  • Employee vehicle ― employer pays the congestion charge directly in relation to a private journey
  • Employee vehicle ― employer reimburses the congestion charge in relation to a private journey

Congestion charge

Introduction

The congestion charge was introduced in London in 2003. There is no specific tax legislation relating to the congestion charge. The tax treatment of the reimbursement or the payment of the congestion charge is covered by the general legislation covering either the payment of pecuniary liabilities or the payment of expenses.

The congestion charge

The congestion charge applies to the majority of motor vehicles either driven or parked on certain roads at particular times within London. This treatment of the congestion charge also applies to other road tolls, such as the M6 Toll road charge.

There are three key questions for an employer:

  1. who is the registered owner of the vehicle which is subject to the congestion charge?

  2. who pays the congestion charge?

  3. what was the nature of the journey?

The tax treatment will depend on the answers to these questions:

  1. if

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