company car
October 7, 2010 | 20,00 EUR | answered by Michael Herrmann
Hello,
I work full-time in the public sector and commute 20 km one way daily, so 40 km in total. In addition, I am self-employed part-time, running a typing service and also requiring trips. Now I want to buy a car for business purposes, which I will also use privately. There are various ways of billing for this, such as the 1% rule, a logbook, etc. I am familiar with all of this. My question is: If I have a car as a company vehicle, what category do my trips to my main place of work fall under? Are they considered business trips or private trips?
Neither the tax office nor the Chamber of Commerce has provided any guidance on this matter.
Thank you for your efforts.
Dear questioner,
First of all, thank you very much for your inquiry, which I would like to answer based on the information provided and in the context of your assignment as part of an initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
In answering your question, I assume that you determine the profit from the side job as income-expenditure accounting.
For non-balance sheet accountants, a car can only be billed as a business expense if it is used for business purposes for more than 50% of the mileage. Commuting between home and the place of work for non-self-employed activities is not considered a business trip.
In your case, the car is considered a private vehicle. However, you can claim the trips incurred in the typing service at a flat rate of €0.30 per kilometer or prove a higher mileage rate based on the actual costs of the vehicle.
I hope that this information has provided you with a sufficient overview of the situation within the scope of your assignment, and I remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
