Trick for hired drivers: keep your toll and fuel receipts on vacation

The average motorist will cross the border with little relief due to the low fuel prices in the countries around us. This does not apply to people who drive company cars towards the sun.

The company fuel card may not always be used abroad. Then all of a sudden you have to pay for fuel and fees, just like everyone else.

personal use

Acid for charter drivers. They actually pay as well as being able to use their car privately. In terms of net worth, that costs hundreds of euros per month.

It is true that the employer is allowed to pay for gasoline and tolls abroad without any tax consequences, but most employers are not so in favor of this.

Thus, the fuel costs and tolls during the holiday are very acidic. To compensate employees for this, they can adjust that against the addition, says Dick van Leeuerden of ADP human resources and payroll services provider.

tax advantage

Explains how it works by means of an arithmetic example. “Suppose you incur costs of 250 euros during your vacation. You declare them to your employer,” he begins.

Van Leeuwerden continues, “Your employer pays and blocks the claim immediately, but then as a personal contribution for the private use of your company vehicle.” “It doesn’t cost the employer anything, except for some extra management.”

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 250 euros. Let’s say it falls under the 49.5% rate, this saves approximately 125 euros in taxes. “So you won’t be fully compensated, but it’s still an opportunity to cut costs dramatically,” van Leeuerden concludes.

Employer cooperation is required to arrange this. He adds that this possibility is not provided for by law, but Tax and Customs Administration requires that the scheme be included in the employer’s “vehicle scheme”. “When they first encounter it, they may be a little hesitant, but it’s becoming more and more known.”