(2024) How can I correctly determine the private use value of my company car?

If the business use, including journeys between home and business and for trips home as part of maintaining a second household

• is more than 50%, the vehicle automatically becomes part of the necessary business assets.
• is between 10% and 50%, you can choose whether to allocate the vehicle to business assets or private assets (discretionary business assets).
• is less than 10%, the vehicle is considered necessary private assets.

For a vehicle allocated to business assets, you can record all costs in full as business expenses and deduct them for tax purposes. Business expenses also include costs incurred for private journeys and journeys between home and business premises. However, a correction is made for these journeys:

• For private journeys, a private usage value must be taxed, i.e. recorded as business income. Additionally, VAT is calculated on this usage value and added to business income.
• For journeys between home and business and for trips home as part of maintaining a second household, the total costs are proportionately reduced. In return, these journeys are deducted as business expenses using the travel allowance.

The private usage value can be determined

• (1) using the flat-rate method, if the business usage share is more than 50%.
• (2) using the logbook method.
• (3) using the partial value, if the business usage share is less than 50%.
• (4) Additionally, cost capping may apply when using the flat-rate method.