The ordinary motorist will cross the border with a slight sigh of relief because of the lower fuel prices in the countries around us. This does not apply to people who drive towards the sun by company car.
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The company fuel card may not always be used abroad. And then suddenly you have to pay for fuel and tolls, just like everyone else.
Private use
Acid for lease drivers. They already pay addition to be able to use their car privately. That costs net hundreds of euros per month.
It is true that the employer is allowed to pay for the costs of petrol and tolls abroad without any tax consequences, but most employers are not much in favor of this.
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The fuel and toll costs during the holiday are therefore extra sour. To compensate employees for this, they can set this off against the addition, says Dik van Leeuwerden of HR and salary service provider ADP.
Tax advantage
He explains how it works using a calculation example. “Suppose you have incurred costs of 250 euros during your holiday. You declare them to your employer,” he starts.
“The employer pays you the claim and immediately withholds it, but then as a personal contribution for the private use of your company car,” Van Leeuwerden continues. “That costs the employer nothing, except for some extra administration.”
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The employee benefits from this, because the personal contribution for private use reduces the addition of the company car. This means that the employee does not pay tax on the 250 euros. Suppose he falls under the 49.5 percent rate, then that saves almost 125 euros in tax. “So you will not be fully reimbursed, but it is still an opportunity to reduce costs considerably,” concludes Van Leeuwerden.
In order to arrange this, the cooperation of the employer is required. The possibility has not been laid down by law, he adds, but the Tax and Customs Administration does require that the scheme be included in the employer’s ‘car scheme’. “When they first encounter it, they may be a bit hesitant, but it is becoming more and more known.”
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