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12:00 am, October 22, 2008
C-charge will be tax deductable claims pro-TIF lobby

By Simon Binns

Self-employed workers will be able to set the congestion charge against tax, according to The Yes Campaign, the pro-TIF organisation set up to encourage people to vote for the proposed £2.7bn package in the December referendum.

The group claims a note from the Inland Revenue makes it clear that “where someone who is self-employed and has incurred the congestion charge as part of their normal business travelling expenses it will generally be tax deductible.”

Equally for a charge incurred by employers, “tax relief is only available for congestion charges incurred in business travel.”

The Yes Campaign was responding to what it called a “stunt” organised by Forum of Private Business (FSB), designed to show that a plumber could not carry out business by tram.

Paul Henly, spokesman for the FPB, told Crain’s it was “unrealistic” for some people to use public transport instead of roads.

“We have worked with real business people, such as a plumber’s merchant in Trafford, to demonstrate the practical difficulties some will face if they are forced to use their car.

“Someone like a plumber’s merchant can’t use the tram to carry all their supplies, It’s ludicrous.”

A spokesman for The Yes Campaign said: “Nobody in their right mind thinks a plumber should travel to work by tram.

“Plumbers will able to claim back 40 per cent of a congestion charge in tax so the very most they could pay is £3 a day. With clearer roads, a plumber who charges an average of £50 an hour and fits in one extra hour of work will be able to pay the charge and still be £35 a week better off.”

comments?sbinns@crain.com

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