Q: We have Started Reimbursing London’s Extended Ultra Low Emission Zone Charges When an Employee must Pay them Whilst on Business for us. Can We Reimburse them Free of Tax?
A: Yes, the reimbursement can be made free of tax (and National Insurance). Think that this is a cost the employee has had to incur as a result of doing their job. So, really, it’s treated the same way as any other motoring cost you may reimburse such as the cost of parking or a toll road. You are very much advised to make sure all expenses reimbursed are receipted just in case HMRC checks in future!
