Can I claim parking costs and the London Congestion Charge as a business expense?

Yes — parking costs incurred during business travel are allowable expenses. This includes pay-and-display parking, car park fees, and meters, as long as the travel itself qualifies as business travel (not commuting). The London Congestion Charge (£15/day in 2024) is also allowable if you are driving in the Congestion Charge zone for business purposes. Tolls, bridge crossings, and ferry costs for business journeys are similarly deductible. Note: parking fines and penalty charge notices are NOT deductible — HMRC treats fines as non-allowable regardless of whether you were on business at the time. If you use the approved mileage rate (45p/25p per mile), parking and tolls are not included in the mileage rate and can still be claimed separately on top of it.

  • Business parking costs (car parks, meters, pay-and-display) are allowable
  • London Congestion Charge is deductible for business journeys in the zone
  • Tolls, bridge fees, and ferry costs for business travel: also allowable
  • Parking fines and PCNs: NEVER deductible
  • Parking can be claimed in addition to the approved mileage rate

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