The journey to work, often defined as the distance between home and the first place of work, plays an important role in fleet management and company car use. Tax regulations, in particular on taxation when using a company car, are of central importance here.
What is the commute?
The journey to work describes the distance that employees regularly travel between their place of residence and their first place of work. Both private vehicles and company cars can be used for these journeys. The use of a company car for commuting is subject to special tax regulations.
Company car and commuting: taxation and exemptions
In Germany, the taxation of commuting with a company car is based on the so-called one-percent rule or the driver’s logbook. In addition, specific regulations apply for employees in the field or working from home:
- One-percent rule and commuting: With the one-percent rule , the non-cash benefit for the private use of a company car is calculated as a lump sum. A surcharge of 0.03% of the gross list price per kilometer is applied for the journey to work.
- Logbook as an alternative: A logbook enables more precise accounting of usage. This method offers tax advantages, particularly for low private use or short journeys to work.
- Home office and tax relief: For employees who mainly work from home , there is no regular commute to work. As a result, they can benefit from lower taxes on the company car, as there are no surcharges for the commute.
- Field staff: Special regulations apply to field staff. As there is often no fixed place of work, taxation of the journey to and from work may be waived. Instead, the business use of the company car is taken into account.
Why is taxation of the journey to work relevant?
Correct taxation of the journey to work is not only important from a legal perspective, but also offers potential for cost optimization:
- Save costs with the logbook: By documenting journeys accurately, employees and employers can avoid unnecessary tax charges.
- Tax relief through working from home: Employees who work partially or completely from home can minimize the non-cash benefit by reducing their commute.
- Planning in fleet management: Companies can reduce overall fleet costs through targeted planning of vehicle use and tax strategies.
The use of a company car for commuting poses both challenges and potential. Whether it’s the one-percent rule, logbook or special regulations for home office and field service – an individual analysis is essential.
