The expanding ULEZ zone 🚨
This image is sourced from Oxford Scholastica
In case you haven’t heard, the Ultra Low Emission Zone (ULEZ) is expanding again in August 2023. But what does this mean? We will explain it all in this blog.
What is the ULEZ?
The ULEZ boundaries were initially put in place in 2019 by Transport for London (TFL) to reduce pollution levels in the city. The current boundaries cover the city and some of the central London boroughs.
If you enter this zone with a vehicle that is not ULEZ compliant, you are subject to a fee of £12.50. If you enter the centre of London you may be required to pay an additional fee for entering the Congestion Charge zone.
Four out of five cars are already ULEZ compliant - check whether your car is ULEZ compliant on the Transport for London website
To find out about the ULEZ zone, read part one of this blog.
What is changing this August?
The boundaries will expand to a much larger area (18 times larger than it currently is) to include all London boroughs. This means any vehicle that is non-compliant will be subject to the ULEZ fee to drive through or around the new zone.
These new measures will include residences within the zone, but you will not be required to pay the charge if you are parked within the zone and don’t drive.
What vehicles will be affected?
The charge will apply to any vehicle that does not meet the specific emission standards outlined by Transport for London. But typically, it will mean diesel vehicles must meet Euro 6 emissions standards and petrol vehicles must be Euro 4 emission standards. You can check whether your vehicle is compliant with the TFL vehicle checker tool.
What are the charges for the expanding ULEZ zone?
The charge will be the same as the current zone. It is usually £12.50 a day for non-compliant vehicles such as cars, motorcycles and vans - however, it will ultimately depend on the level of emissions your vehicle produces.
The penalty charges for drivers who forget to pay the charge has risen to £180 (this is reduced by 50% if you pay in the first 14 days), so we suggest you check before you travel.
Another charge to note is the Congestion Charge fee, this will be on top of the ULEZ fee. You can identify these areas by the large red circle with a white ‘C’ in the middle, this will be at the beginning of all roads to mark that you are entering this zone. Entering these zones will cost £15 - which is separate from the ULEZ charge.
If you frequent these zones and do not have a compliant vehicle, you are able to set up Auto Pay on the TFL website to pay the charges automatically.
Are these any exemptions?
Yes. There are exemptions for vehicles for disabled people and historic vehicles and other vehicles which allow them to apply for a discount from ULEZ charges.
There are also currently exemptions for zero emission vehicles - like electric cars. This is because the aim of these measures is to reduce the air pollution and improve the air quality within the boundary of the zone.
How can I go electric?
Switching to an electric car is one of the most popular ways you can save on clean air charges. It is also better for the environment. This is why the government set up electric car salary sacrifice - to offer a cost effective way of getting your hands on one.
How am I able to save on a salary sacrifice car? Instead of leasing an electric car in the usual way, which is paid with your post-tax (or net) income, the fixed monthly payments are taken from your salary before any income tax or National Insurance is paid - allowing you to save 30-60%!
As a car through The Electric Car Scheme is an employee benefit provided to you, it’s therefore a ‘company car’, so there is a company car tax payable. However, the value of this “benefit-in-kind” (BIK) is set by HMRC, and set at very low rates until at least 2028. This cost is factored into your quote.
To see how much you could save on an electric car, check out our EV salary sacrifice calculator.
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