Change in valuation method for company car trips to work

The valuation method for the benefit of use from trips with the company car between home and work cannot be changed during the year, but a retroactive change at the beginning of the year is possible.

Employers and employees have a choice of several options for determining the taxable non-cash benefit for travel by company car between home and work: In addition to the logbook method, there is the flat-rate valuation at 0.03 % of the list price per calendar month and distance kilometer. In addition, an individual valuation is possible for each day of use at 0.002 % of the list price, which is financially worthwhile if there are fewer than 15 days of use per month.

The Schleswig-Holstein Ministry of Finance has clarified that the surcharge under the 0.03 % rule must also be recognized for calendar months in which the company car is not actually used for journeys between home and work. In addition, the valuation method may only be applied uniformly for the entire calendar year. It is therefore not possible to switch from the 0.03 % rule to individual valuation during the year. However, because the usage behavior in Corona times has changed in part significantly and, above all, suddenly due to work in the home office, there are many cases in which a change to individual valuation would be favorable. The tax authorities therefore allow at least an alternative solution in the form of a retroactive change in the payroll tax deduction (change from the 0.03 % rule to individual valuation or vice versa for the entire calendar year). The prerequisite for this is, of course, documentation of use for the entire year.