Am I also entitled to the travel allowance if I use a company car?

Am I entitled to the travel allowance if I use a company car?

Yes, you can receive the travel allowance even if you use a company car for commuting. However, there are some special conditions to consider:

Most favourable route:

Even if your employer uses the shortest route to calculate the taxable benefit, you may specify a longer route in your tax return if it is more favourable in terms of traffic and you use it regularly.

Surcharge for commuting:

For journeys between your home and primary workplace, you must pay tax on a surcharge in addition to the private usage value of 1% of the list price. This amounts to 0.03% of the list price per kilometre of distance per month. In return, you can deduct the travel allowance of 0.30 Euro or 0.38 Euro per kilometre as income-related expenses, just like any other employee.

Taxation by the employer:

If your employer taxes the company car at a flat rate of 15%, you must deduct the flat-rate taxed amount from the income-related expenses claimed. Only the remaining amount can be deducted as income-related expenses.

Simplification rule:

Even if the employer only uses 180 days to calculate the benefit, you can specify 220 days for your income-related expense deduction, for example.

Am I also entitled to the travel allowance if I use a company car?

Which relocation expenses can I deduct?

In connection with the occupancy of the second home, you can deduct the actual costs incurred for tax purposes. This already begins with the house hunting: Expenses incurred in connection with house hunting, such as travel expenses for viewing properties, telephone or postage costs, are deductible as business expenses.

The tax office also recognises the costs for the move. You can deduct the costs of the removal company, expenses for a rental vehicle, helper wages or moving boxes. The estate agent's fee for obtaining the new rental property is also deductible, but not the estate agent's fee for purchasing a home at the place of employment. Please note that you must provide individual proof of your moving costs as part of the double household, as the moving expense allowance is not granted because you are not relocating your main residence. The deductibility of moving costs also applies to your return move to your main residence. If you need to carry out redecoration work when moving out of your second home, you can also include these in your tax return.

Which relocation expenses can I deduct?

How many trips home can I claim and for what amount?

If you maintain a second household, you can also claim family journeys home for tax purposes, but only one journey per week is allowed. Per year, you can claim a maximum of 46 journeys home, as the tax office assumes 6 weeks of annual leave. However, please ensure you can provide evidence of these journeys if requested by the tax officer.

This can be done, for example, with train tickets or the mileage of your car. You can claim family journeys home for tax purposes using the travel allowance of 0.30 Euro per kilometre (0.38 Euro from the 21st km). The amount you can claim is not limited to the maximum amount of 4.500 Euro per year, as is the case for travel costs to the workplace.

If, for example, you are unable to make a journey home due to illness or high work demands, you can instead claim the costs of a 15-minute phone call with your partner for tax purposes. If, for the same reasons, your family (spouse and minor children) visit you at your place of work, you can claim their travel costs as income-related expenses at the rate of the travel allowance.

However, this does not apply to the costs of accommodation and meals for the family. Costs for family journeys home by plane or paid group transport are recognised at the actual costs.

How many trips home can I claim and for what amount?

Can I claim expenses for "collective transport"?

Collective transport is provided when your employer provides a vehicle for commuting between home and work or if you travel by bus, for example. Whether you can claim travel expenses depends on whether you actually incurred any costs or if the journeys were free of charge for you. If you did not make any contributions, you are not entitled to a travel allowance.

If you had to bear a share of the costs for the collective transport, you can claim this amount with proof. The travel allowance is not applicable here.

In 2021, the Federal Fiscal Court made a groundbreaking decision on the subject of "journeys to the meeting point". It states: If the meeting point is not typically visited on a daily basis, the journeys there can be deducted at business travel rates and not just with the commuter allowance (BFH ruling of 19.4.2021, VI R 6/19). In the underlying case, a construction machine operator was often deployed on multi-day remote construction sites. According to the BFH, this does not constitute a typical daily visit to the employer's meeting point. Consequently, the costs to the meeting point are to be considered at 30 cents per kilometre driven.

Recently, the Mecklenburg-Vorpommern Finance Court ruled that there are no journeys to the meeting point if a furniture fitter parks the company lorry at the roadside or in a - changing - public car park after work, drives home with his own car, and takes over the lorry again the next morning (judgment of 1.9.2022, 2 K 104/19).

Can I claim expenses for "collective transport"?

When should I provide proof of travel by public transport?

When using public transport, such as bus, train, or tram, you can also claim the travel allowance of 30 cents per kilometre (or 38 cents from the 21st kilometre). This is generally beneficial, as the costs are usually lower. However, if the actual costs for public transport over the calendar year are higher than the travel allowance, you can claim these. The total deductible amount is limited to 4,500 Euro.

Mr X travels by train to his workplace on 230 days per year, which is 70 kilometres from his home. Mr X could claim the following costs as work-related expenses using the travel allowance:

• 230 days x 20 km x 0.30 Euro = 2,070 Euro plus
• 230 days x 50 km x 0.38 Euro = 4,370 Euro
• Total = 6,440 Euro.

Without proof and further explanations, only the maximum rate of 4,500 Euro would be recognised. However, with tickets and additional proof, Mr X can demonstrate the actual costs and receive a higher deduction for work-related expenses.

You can also use the tickets as proof of regular use of public transport if it does not take the shortest route to your workplace but is more convenient and faster. If you use a more convenient but longer route, it must be used regularly. You can prove this with tickets.

Tip: From the 21st kilometre, there is an increased travel allowance of 38 cents. This should primarily be applied to the part of the journey made with a privately owned or company car, as the maximum amount of 4,500 Euro does not apply to this. The travel allowance of 30 cents for the first 20 km should primarily be applied to the part of the journey using public transport.

When should I provide proof of travel by public transport?

How can I claim multiple weekly trips home?

As part of maintaining a second household, only one family journey per week is recognised as a deduction for work-related expenses. If you travel home more than once a week, you have an option:

• Either you claim one journey home per week and can simultaneously deduct accommodation costs and meal allowances for the first three months as work-related expenses for maintaining a second household.
• Or you can alternatively claim all journeys home using the distance allowance of 0.30 Euro per kilometre (0.38 Euro from the 21st km) as work-related expenses. These are considered journeys between the second home and the workplace. In this case, you cannot deduct overnight costs and meal allowances for the first three months.

The second option is advisable if you travel home frequently and have low overnight costs at your second residence. You should also note that for the second option, journeys not made with your own car can only be deducted up to a maximum of 4.500 Euro. You can exercise this option only once per calendar year for the same second household. If, for example, you change jobs and work locations within a year, a new second household is established, and you have a new option.

What costs can I claim for the journey there and the last journey home?

As part of maintaining a second household, you can deduct the costs for the first journey from your main home to the second home and for the last journey home as work-related expenses.

The amount you can claim depends on the choice of transport:

• You use your own car: 0.30 Euro per kilometre driven or km cost rate.
• You use a motorcycle or scooter: 0.20 Euro per kilometre driven.
• You use public transport (including plane): actual costs as evidenced.

How can I claim multiple weekly trips home?

Which accommodation expenses can I deduct?

As part of the dual household management, you can deduct the costs for overnight stays in your second home. Only proven costs are recognised, not flat rates. A second home can be a rented flat, a hotel room, or your own house.

Rented flat:

If you use a rented flat, you can claim the rent, additional costs (e.g. heating, electricity), and expenses for necessary furnishings (e.g. table, bed, wardrobe). Items up to 800 Euro net can be deducted immediately; more expensive items must be depreciated over their useful life (e.g. 13 years for furniture).

Hotel:

If you use a hotel, you can deduct the actual proven accommodation costs. If the accommodation price includes meal costs, the deductible amount is reduced by 20% for breakfast and 40% for lunch/dinner of the meal allowance.

Owner-occupied flat:

If you use an owner-occupied flat, you can deduct the additional costs, interest on loans, and depreciation up to the amount of the comparable rent for a reasonable flat.

Maximum amount of 1.000 Euro per month:

There is a cap of 1.000 Euro per month for accommodation costs. This amount includes rent including operating costs, costs for furnishings, second home tax, and renovation. The maximum amount is considered an average value for the year – amounts exceeding this can be offset against lower amounts in other months.

Judgements and deviations:

• BFH judgement of 4.4.2019 (VI R 18/17): The Federal Fiscal Court ruled that costs for furnishings and household items do not count as accommodation costs and can be deducted in addition to the maximum amount of 1.000 Euro. These expenses only concern the use of the furnishings, not the accommodation itself.
• Court order of the FG Saarland of 20.5.2020 (2 K 1251/17): Costs for a rented parking space or garage are also not considered accommodation costs. They can be deducted in addition, even if the rental costs for the flat exceed the maximum amount of 1.000 Euro.
• BFH judgement of 13.12.2023 (VI R 30/21): The Federal Fiscal Court ruled that the second home tax cannot be deducted in addition to the maximum amount of 1.000 Euro, as it is considered a cost of using the accommodation and thus falls under the deduction restriction.

Additional tips:

• Tip 1: If the second home is owned by the employee, the actual expenses such as depreciation, interest on loans, and operating costs can be deducted up to the maximum amount of 1.000 Euro. Furnishings can be deducted additionally (BMF letter of 24.10.2014).
• Tip 2: A furnished flat usually incurs higher rent. If the rental contract does not include a breakdown of the rent for the flat and furniture, the rent can be apportioned using the estimation procedure under § 162 AO. The use of furniture can then be deducted additionally (BFH judgement of 4.4.2019).
• Tip 3: If the purchase costs for the furnishings and equipment of the second home do not exceed 5.000 Euro, these costs can be recognised as necessary on a flat-rate basis without further examination (BMF letter of 25.11.2020).

Which accommodation expenses can I deduct?

What other costs are deductible for a second household?

If the conditions for maintaining a second household are met, various work-related expenses can be claimed for tax purposes. This begins with the search for accommodation. Expenses related to the search for accommodation, such as travel costs for viewing properties, telephone or postage fees, can be deducted as work-related expenses.

The tax office also recognises the costs for the move. These include, among others:

• Transport costs for a removal company or
• a rental vehicle and also
• travel expenses on the day of the move.

Furthermore, the rent and ancillary rental costs, such as heating or electricity, for the second home can be deducted. Expenses for necessary furnishings can also be deducted.

These include, for example:

• table,
• bed,
• wardrobe,
• kitchen and bathroom furnishings,
• dishes and pots,
• coffee machine,
• vacuum cleaner, as well as
• table and bed linen.

Also deductible are:

• second home tax,
• expenses for renovating the second home before moving in and when moving out, and
• damage costs resulting from an accident that occurs on a journey home.

For purchase costs up to 800 Euro net, the amount can be deducted in full immediately; more expensive items must be depreciated over a longer period.

What other costs are deductible for a second household?

Which route is relevant for the distance in kilometres?

For the travel allowance, the shortest usable road route between your home and your primary place of work is decisive. The primary place of work is the fixed workplace permanently assigned to the employee by the employer. This means that the employee works there regularly and permanently.

A longer route can be recognised if it is obviously more convenient in terms of traffic – that is, if you can reach your workplace faster and more punctually.

Criteria for more convenient routes:

• The time saving should be at least 10% of the time required for the shortest route (BFH ruling of 16.11.2011).
• A route can also be more convenient without significant time savings, e.g. due to better roads, fewer traffic lights or less traffic.
• Health reasons, such as fear of heights on high bridges, can also justify choosing a longer route. However, the resulting costs cannot be deducted as extraordinary expenses.

Examples:

• Short route (25 km): 230 days x 20 km x 0.30 Euro + 230 days x 5 km x 0.38 Euro = 1.817 Euro.
• Longer route (42 km): 230 days x 20 km x 0.30 Euro + 230 days x 22 km x 0.38 Euro = 3.202,80 Euro.

The tax office must be convinced of the regular time saving in this case.

Important notes:

• Multiple modes of transport: Even if you combine different modes of transport (e.g. bicycle and public transport), the shortest road route applies.
• Multiple journeys: The allowance can only be used once per day, even for multiple journeys to the workplace.
• Long-distance commuters: From the 21st kilometre, the allowance was increased until 2026:
  • Since 2021: 35 cents
  • Since 2022: 38 cents

Current ruling:

The Lower Saxony Finance Court confirmed in April 2024 that the longer route must be regularly more convenient in terms of traffic. It is not sufficient if it is only faster in the event of extreme traffic jams (ruling of 3.4.2024, 9 K 117/21).

Which route is relevant for the distance in kilometres?