Can I claim parking, the congestion charge and ULEZ as a business expense?

Parking and the Congestion Charge on business journeys can be claimed in 2026-27. ULEZ charges probably follow the same test, though HMRC does not name them. Commuting costs, fines and penalty charge notices, including parking tickets, cannot.

The rules below follow GOV.UK, HMRC's Business Income Manual, the 2026 notes to the self-employment pages of the tax return and Transport for London (TfL), as checked on 17 October 2026.

Parking on a business journey

GOV.UK's list of self-employed travel costs you can claim includes parking, alongside fuel, insurance and repairs. The tax return notes put parking in box 20, car, van and travel expenses. Parking at or near a job counts, as long as the trip was for work.

The test behind every expense is section 34 of the Income Tax (Trading and Other Income) Act 2005: a cost must be incurred wholly and exclusively for the trade, though if it has more than one purpose you can deduct any identifiable part that is. HMRC's manual says the actual costs of trade journeys, such as fuel, tolls and parking fees, should be allowed.

The Congestion Charge and ULEZ

HMRC's manual on the mileage rate names congestion charges, with tolls and parking fees, as costs connected with a particular journey, and says they are allowable where they are incurred solely for business. So the daily Congestion Charge for a business journey into central London can be claimed, unless it is your commute to a fixed base.

The guidance we checked does not name the Ultra Low Emission Zone (ULEZ) charge. Like the Congestion Charge, it is a daily charge for driving in the zone, so in our reading the same section 34 test applies to it.

What TfL charges in 2026

The Congestion Charge went up from £15 to £18 on 2 January 2026. From the same date, TfL says electric vans registered for Auto Pay get a 50% discount.

The ULEZ runs all day, every day except Christmas Day, across all London boroughs, and covers vans up to and including 3.5 tonnes. TfL sets the standard for vans at Euro 6 for diesel and Euro 4 for petrol, and the £12.50 charge is only for vehicles that do not meet it and are not exempt. TfL says the ULEZ charge is in addition to any Congestion Charge, so a non-compliant van in the Congestion Charge zone in charging hours pays £30.50 a day if both are paid on time.

Fines and penalty charges cannot be claimed

GOV.UK's list of travel costs you cannot claim includes fines or penalty charges. The tax return notes also list fines as disallowable in box 20. HMRC's manual explains that a fine for breaking the law is not incurred wholly and exclusively for the trade.

That covers a parking ticket, a speeding fine and a TfL penalty charge notice (PCN) for an unpaid Congestion Charge or ULEZ charge, even if you were on a job.

Commuting to a fixed base

GOV.UK also says you cannot claim travel between home and work. HMRC's manual adds that the cost of that journey includes incidental costs such as car parking and congestion charges, and all of them are disallowable when one purpose of the trip is getting from home to your place of work. If you drive from home to your own yard or unit each day, parking there is a commuting cost.

The picture is different if you work from home at a run of temporary sites. HMRC's manual says that where an itinerant trader's base is their home, travel between home and the sites can be allowed. Our guide on travel from home to site explains who counts.

On top of the mileage rate

If you use simplified expenses for your van, the flat rate replaces fuel, insurance, repairs and the cost of the van. GOV.UK says you can still claim parking on top, and HMRC's manual says the rate does not include tolls, congestion charges and parking fees. ULEZ is not named in either, so the guidance does not settle it. Our guide on van mileage covers the rates.

A worked example

A self-employed electrician works from home, at a different customer most days. They drive an older diesel van that does not meet Euro 6, and claim actual van costs rather than the mileage rate. In the quarter from 6 April to 5 July 2026 they record:

If the van met Euro 6, the ULEZ line would be £0. This is an example only.

What this means for you

Parking and Congestion Charge payments on work trips reduce your profit, and ULEZ payments probably do too. Fines, PCNs and anything on a private or commuting trip do not.

Under Making Tax Digital (MTD), these costs go in HMRC's category "Car, van, and travel expenses". GOV.UK says MTD uses the same categories as Self Assessment, and that you do not need a digital record of an expense that is not for business use.

Steps to claim

1. Keep each parking receipt and download your TfL Congestion Charge and ULEZ payment history.
2. Note the job or customer next to each payment, so the business purpose is clear.
3. Check your van on TfL's vehicle checker. If it meets the ULEZ standards, you have no ULEZ charge to pay or claim.
4. Record parking, Congestion Charge and ULEZ payments under car, van and travel expenses.
5. Leave out fines, PCNs and charges on private or commuting trips, or mark them as personal.
6. If you use the mileage rate, add parking, tolls and congestion charges on business journeys on top.

The free MTD check shows when MTD starts for you, and the trades section has more guides.