BUSINESS motorists operating in London, or driving to London to meet clients, should be aware of a significant new charge to drive in the capital.
On April 08, 2019, London’s Ultra Low Emission Zone (ULEZ) begins.
The ULEZ is separate to the Congestion Charge which will continue. However, the ULEZ will replace the current T-charge. It is being introduced one year earlier than originally planned.
Why does London need a ULEZ?
London is one of many cities introducing low or ultra low emission zones in a bid to help improve air quality. Transport has been fingered as a significant pollutant. These include nitrogen oxides (NOx) which contribute to illegal levels of nitrogen dioxide (NO2) and PMs (particulate matter).
Transport for London (TfL) says:
“These pollutants make chronic illnesses worse, shorten life expectancy and can damage lung development.”
TfL says that the introduction of the ULEZ will help improve the quality of London’s air.
What does the ULEZ charge mean to business motorists?
It means a charge of £12.50 per day that operates 24/7 if your car doesn’t meet the standards.
The standards are these: petrol cars must be Euro 4 emission standard; diesel cars must be Euro 6 emission standard.
If your car does not comply with these standards, then you will be charged the £12.50. Failure to pay the ULEZ charge will result in a penalty notice of £160 which will be reduced to £80 if paid within 14 days.
Euro 4 petrol cars have been around since 2005, while Euro 6 diesels are generally those cars registered after 2015.
Martin Wilson, Managing Director of leasing firm Balgores Car & Van Leasing and a member of the Leasing Broker Federation commented:
“There are two issues which business motorists need to consider. The first if they use an old car or classic car for their business driving – these vehicles will not be compliant.
“The second is that, when the original introduction of ULEZ was announced it was going to be at the end of 2020. By then most non-Euro 6 diesel cars should have washed through the system on four year cycles.
“But now the introduction date has been brought forward there’s the potential for drivers on a four-year cycle still to be driving a non-compliant diesel once the ULEZ begins. TfL has a checker if you have any doubts.”
ULEZ extension is coming in 2021
However, the ULEZ doesn’t stop there.
From October 25, 2021, the area covered by the ULEZ boundary will be extended to create a larger zone with a circumference extending to the North and South Circular Roads. And this will have a more significant effect on business motorists in the London area.
If you are driving any petrol or diesel vehicle within this enlarged area you will also need to meet new tighter emissions standards or pay a daily charge.
Any tips for dealing with ULEZ?
Martin Wilson says there are no magic tips to help with the ULEZ.
“The best advice I can offer is don’t bury your head in the sand. It’s coming, speak to a company with fleet management experience, such as Balgores Leasing who can offer impartial advice.
“The biggest impact will be on smaller companies using older second hand cars, and particularly those who have decided to take the cash and save money by taking a cheaper second hand car.“
One thing is for sure: if your business motoring regularly takes in London, then you will be facing additional costs if your car is non-ULEZ compliant. Is it worth taking the cost – or moving to a ULEZ compliant car?
More information on the ULEZ
If you want to understand more about the forthcoming ULEZ, and how it may affect you, go to the TfL site on the ULEZ
Remember, ULEZ starts on April 08, 2019.
ULEZ extensions commences October 25, 2021
The ULEZ operates 24/7 365 days a year
19May
Northgate are in it for the long haul
WHEN it comes to long term rental, Northgate offers a comprehensive range of support packages for SMEs, with a wide range of fleet solutions to meet the diverse needs of
18May
ChargedEV – helping SMEs on their electrification journey
CHARGEDEV specialises in the supply and installation of Electric Vehicle charging equipment across the UK and having installed over 23,000 domestic and workplace EV chargers to date, it has become
17May
R2C – digitising the fleet management process
R2C Lite has been created to eliminate labour-intensive administration processes, aid compliance and increase business productivity for SME fleets running HGVs, vans, trucks, trailers and more, many of which will
17May
Northgate’s mobility solutions keeping you on the road
NORTHGATE Vehicle Hire's additional mobility solutions options and support packages can be built into its existing rental contracts, cutting down the need for multiple supplier agreements to be signed and
09May
BMW – looking after fleets large and small
WHETHER you are a sole trader looking for a car that works for your business or you manage a fleet of fewer than 50 company cars, the BMW Business Partnership
04May
BMW i4 – makes a lot of sense for the company car driver
THE new BMW i4 is the German premium brand's first ever all-electric Gran Coupé and it's a very interesting proposition for company car drivers with a 2% BIK rate for
03May
Innovation drives Wilson Auctions’ success
AS one of the first in the industry to introduce MVR (Motor Vehicle Repair Workshops) on its various auction sites nationwide, Wilson Auctions was highly commended in this year's Business
28Apr
Tax efficiency – BMW’s X1 PHEV, a Business Motoring winner
BMW's X1 xDrive 25e is a Business Motoring winner, picking up the Best Small SUV gong at this year's awards. It features a 1.5-litre three-cylinder petrol engine and electric motor
27Apr
BMW X5e – makes real sense to drivers and fleet managers
THE BMW X5 xDrive 45e offers user-choosers a large SUV which delivers low running costs and associated tax bills. Thanks to CO2 emissions of 27-31g/km, the X5 falls into the
27Apr
Van Monster Remarketing – tops for Business Motoring Awards
EXCEPTIONAL levels of customer service are at the heart of the Van Monster Remarketing proposition. The personal nature of the service provided by its Remarketing account managers has enabled to grow
25Apr
BMW iX electrifies the Business Motoring Award judges
THE BMW iX will add electric performance to any forward-thinking fleet manager, as well as a spacious, lounge-like interior to keep drivers focussed on the road ahead, with a range
22Apr
BMW iX3 brings electricity into the mainstream
Following the i3 and i8, the BMW iX3 is the brand's first electric SUV and the winner of this Year's Business Motoring Awards Best Medium SUV category. And the electric
19Apr
Executive express – BMW530e offers savings for company car drivers
THE BMW 5 Series Saloon is the epitome of a sporty business saloon and The 530e plug-in hybrid models combine performance and frugality to create an optimised executive car. With
13Apr
KeyFleet Partner Programme – Best Company Car Programme winner
WITH electric vehicles on the rise and with many government initiatives and support of the EV revolution, KeyFleet has become an ambassador for EVs.All employees are trained in Whole Life
13Apr
Keeping up with the times – Europcar, Business Motoring Award winner
MULTI-MODEL mobility is becoming increasingly important for SMEs, particularly in the short-term rental arena and the EuropcarOne mobility platform provides seamless access to a full range of solutions, from daily
12Apr
SOGO – Business Motoring Best Mobility Provider Winner
SHORT-TERM leasing is essential to the mass adoption of electric vehicles before 2030 when sales of all new cars and vans powered wholly by petrol and diesel will be banned.
11Apr
Flexibility is key – Europcar, Best Long Term Rental
FROM COVID-19 and semi-conductor shortages impacting on vehicle supply to rising inflation and uncertain trading conditions, the past 12 months have not been easy for any business. But they have
08Apr
Size doesn’t matter to Best Leasing Company winner JCT600 VLS
GIVING customers access to the same industry-leading solutions, service and technology, no matter what their size, is at the heart of the business at JCT600 Vehicle Leasing Solutions (VLS), winner
07Apr
Smart charger – Ohme a Business Motoring Award winner
ELECTRIC Vehicles are what everyone is talking about, as is the infrastructure required to make them a viable proposition. Helping to build this infrastructure is Ohme, a smart charging hardware
Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.
In reply to Martin Wilson’s comment on old vehicles –
“There are two issues which business motorists need to consider. The first if they use an old car or classic car for their business driving – these vehicles will not be compliant.”
– you should add that vehicles over 40 years old and registered as “Historic” are in fact exempt.
In reply to Martin Wilson’s comment on old vehicles –
“There are two issues which business motorists need to consider. The first if they use an old car or classic car for their business driving – these vehicles will not be compliant.”
– you should add that vehicles over 40 years old and registered as “Historic” are in fact exempt.