The rules for tax-free mileage allowance, also known as the 60-day rule, can be difficult to navigate. However, it provides the framework for how you are allowed to receive mileage reimbursement. In the following, we'll introduce you to the 60-day rule and its implications for mileage reimbursement.

What is the 60-day rule?

The purpose of the 60-day rule is to allow you to receive tax-free mileage allowance if you use your own Car in the job. If the car is not in your own name, it is crucial that you have joint finances and thus share the costs of the car. If a car is in your parents“ name, it only counts as your ”own car" if you pay the running costs of the car yourself.

For a period of 12 months, you can receive tax-free mileage allowance for driving between your home and workplace for the first 60 working days. However, the rule becomes particularly relevant if you have changing workplaces. If you work 60 consecutive days at a different workplace than the first, the count will be reset for the first workplace and you can receive the 60 days tax-free allowance again. However, if you have completed 60 days at the same workplace, you can no longer receive tax-free mileage allowance.

In other words, the 60-day rule's summation is only reset when driving to other workplaces for 60 days or more. This means travelling to projects or driving from home to the company address. Absences, weekends, public holidays and home working days do not cause the rule to reset itself.

The rule applies to a 12-month period, which means that driving more than 12 months in the past is not counted.

When is it a workplace?

Workplace means the specific address where the day's work is carried out. If you are a salesperson, every customer you visit will constitute a workplace, as will any office you may have. If you are a craftsman, the specific construction site, or wherever you carry out a task, will be your workplace.

But what if this tradesman is working on terraced houses that are placed next to each other? According to the employees at SKAT, the 60-day rule still applies. This is because there are a number of separate addresses that the tradesman is working on. This means that the 60-day rule would also apply if the employee works on several different apartments in the same block of flats, as in principle this is also several different addresses.

Handle the 60-day rule automatically

Managing the 60-day rule for all your employees can quickly add up to a lot of administrative hours for your organisation.

With Intempus’ digital time tracking system, however, you can avoid the manual work as the system can handle the 60-day rule automatically.

This means that once the rule is set up for employees in the company, the days are automatically registered when employees register their work. Once the first 60 days have been used, the mileage allowance automatically becomes taxable until the employee starts driving to a new workplace.

If you're curious about how Intempus can make it easier for you to keep track of your vehicle registration, don't hesitate to give us a call at +45 26390400. You are also welcome to book a free and non-binding demo:

SKAT sets requirements for your driving registration

It's worth noting that SKAT places relatively high demands on the documentation of driving. It is therefore crucial that you keep track of a number of factors, such as the purpose of the journey, time, date, etc. With Intempus time registration, you can easily and clearly keep track of all the documentation that SKAT can demand to see at any time. Through the Intempus app, it is possible to create a digital logbook where all relevant driving information is registered. That way, you never risk being left without documentation.

However, if you are unsure about your specific situation, we would always recommend calling SKAT to make sure everything is clear.

Want to know more about tax rules and tax-free mileage allowance?

To learn more about how Intempus can keep track of your business mileage, read about easy mileage tracking with app here or how to make one digital driver's logbook according to SKAT.

You can also learn more about the 60-day rule at SKATS website, where they have described the rule with several good examples. 

The content of the article is based on specific information from SKAT's website, skat.dk.