🚙 Use of a vehicle under a business name - how it affects taxation
When you use a car in your business, it has a direct impact on your taxation and, if used correctly, can bring significant tax savings. Your vehicle's tax liability is affected by how much you drive it for business purposes, and this determines how much you can deduct from your taxation
🔹 Less than 50% business driving? Tax benefit through kilometre allowances
If less than half of the use of your vehicle is for business purposes, the expenses are treated as an additional deduction. This means that we will automatically include your driving in your tax bill according to the mileage allowances set by the Tax Administration.
🔹 Over 50% business driving? Deductions according to receipts
But when business-related journeys account for more than 50% of total annual kilometres, the situation changes. In this case, vehicle expenses such as fuel, maintenance and insurance are split between private and business driving, and tax deductions are made on the basis of the receipts provided.
📒 Driver's logbook
As deductions are based on driving, it is necessary to keep a logbook. Similarly, basic vehicle information must be provided so that we can process your tax correctly.
If you want to easily and accurately add your car expenses to your accounting, we recommend the Driversnote app. As a Truster customer, you get it at a discounted price, and recording your working hours is a breeze. This way, your company's expenses are kept in order - automatically.
👉 Get Driversnote at a special price here!