Company car for private use
February 11, 2013 | 25,00 EUR | answered by Michael Herrmann
My wife drives a company car, which she is also allowed to use for private purposes. According to the 1% rule, the corresponding amount is added to her gross salary. From her net salary, this amount plus a flat rate for journeys between home and work is then deducted. Additionally, her boss demands a 50% contribution to the ongoing costs per year.
We have only been married for a short time and I have only recently become aware of this situation. It all seems strange to me. Isn't she paying too much for this?
Dear questioner,
First of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your commitment within the scope of an initial consultation. The response is based on the description of the facts. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Participation in the ongoing operating costs reduces the taxable benefit-in-kind of the company car. If the employer has not taken into account or incorrectly considered the additional payments for operating costs when determining the taxable benefit, this situation can be corrected in the income tax return.
For this purpose, the additional payment should be reported to the tax office as negative income. You should obtain a certificate of the additional payment from the employer. Since the tax form (Attachment N) does not provide for the declaration of negative income, you should make the calculation on a separate sheet, where you represent the taxable benefit according to the payslip and deduct the additional payment. Only the gross salary reduced by the additional payment is subject to tax.
I hope that these explanations have given you a sufficient overview of the situation within the scope of your commitment and this initial consultation, and I remain
Yours sincerely,
Michael Herrmann
Diploma in Financial Management
Tax Advisor
