Double household management / company car / trips home to family residence
December 6, 2011 | 30,00 EUR | answered by Michael Herrmann
Dear Sir or Madam,
I live in Hamburg and will be starting a new job approximately 270 km away on January 16, 2012.
My main residence and that of my family will remain in Hamburg. I will be looking for a small apartment in the city where my new job is located and will commute to Hamburg on weekends (round trip approximately 540 km).
My new employer will provide me with a company car. According to the company car policy, the 0.002% rule applies in the case of maintaining a second household.
Does this mean that I have to calculate a monetary benefit of €30,000 (list price) x 0.002% x 540 km = €324 per trip?
This would mean that each trip would cost me over €150, making a train journey cheaper.
Are there any family visits that are not calculated?
Or would it be better for me to drive my own vehicle and deduct the expenses as business expenses?
Thank you for a prompt response.
Best regards,
sk
Dear inquirer,
First of all, thank you for your inquiry, which I am happy to answer based on the information provided and in the context of your initial consultation. The response is based on the description of the circumstances. Missing or incorrect information regarding the actual situation can affect the legal outcome.
In determining the private use of a provided vehicle, a surcharge of 0.03% of the list price per month is added for trips between home and the workplace for each kilometer of distance between home and the workplace. This surcharge applies to trips at the place of employment.
The surcharge increases for trips to the family home as part of a double household management by 0.002% of the list price per month for each kilometer of distance between the place of employment and the location of the individual's household.
However, both surcharges must be offset against the amounts deductible as advertising costs for these trips. This means that the 0.03% surcharge is reduced by the distance flat rate and the surcharge for family home trips is reduced by the corresponding travel costs. In the case of a family home trip, this amount is reduced by 540 km x 0.30 € = 162 € each time. One trip home per week is permissible. The surcharge of 324 € applies for the entire month, so it is already used up after two trips.
I hope this information provides you with an sufficient overview of the situation in the context of your inquiry and this initial consultation.
Sincerely,
Michael Herrmann
Tax advisor
Diploma in Finance (FH)
