The 60-days rule can be difficult to navigate. However, it builds the framework for understanding the requirements to getting mileage indemnity covered. In the following we will present the implications of the 60-days rule and for payment of mileage indemnity.
What is the 60-days rule?
The purpose of the 60-days rule is to receive tax free mileage indemnity if you use your own car in connection with work. If the car is not registered in one’s own name it is essential that you have shared finances and split the expenses for the car. If the car is registered in your parent’s names, it only counts as ‘’one’s own car’’ if you are paying the expenses for the car.
Within a period of 12 months you can receive tax free mileage indemnity for driving between your living place and your work place in the first 60 working days. The rule becomes particularly relevant if you have changing workplaces. If you work 60 days in a row in another workplace than the first one, the counting for the first workplace will be overridden and you can once more make use of the 60 days tax free indemnity. If you on the other hand have reached 60 days in the same workplace, then you can no longer receive tax free mileage indemnity.
The rule counts for a period of 12 months which means that the driving that is more than 12 months in the past is not counted in.
When is it a workplace?
By workplace it is referred to the concrete address that the concerned day’s work is fulfilled on. If you are a salesman, every customer you visit will count as a workplace similarly as an eventual office would. If you are a carpenter, the specific construction ground or the place in which you solve a project will be the workplace.
But what if this carpenter works on terraced houses that are placed next to each other? According to SKAT the 60-days rule is still relevant here. This is because there are a number of separate addresses in which the carpenter works on. This means that the 60-days rule would be relevant if the employee works on different apartments in the same building because these are in principle separate addresses.
Handle the 60-days rule automatically
It can cost a company a lot of administrative hours if you have to deal with the 60-days rule for all your employees.
With Intempus’ digital time registration system you can avoid doing the manual labor as the system deals with the 60-days rule completely automatic.
This means that when the rules are activated for the employees in the company, the days are automatically registered when the employees are plotting their working hours. When the first 60 days have been used, the mileage indemnity will automatically become a tax liable until the employee starts driving from a new workplace.
If you are curious about how Intempus can make it easier for you to keep track of your milliage registration, don’t hesitate to give us a call on +45 26390400.
SKAT makes requirements to your mileage registration
It is worth noting that SKAT makes rather large requirements for the documentation of your driving. It is therefore entirely essential that you keep an eye on a number of factors, e.g. the purpose of the driving, the time and date, etc. With Intempus time registration you can easily oversee and structure all your documentation that SKAT can demand to access at any time.
Through the Intempus App it is possible to create a digital mileage book where all the relevant information about the driving is registered. In this way you make sure never to miss documentation.
Are you in doubt about your concrete situation, we will always reccomend calling SKAT, so you have it all covered.
Do you want to know more about tax regulations and tax free mileage indemnity?
If you want to know more about how Intempus can help you keep track of your business driving, you can read more about easy driving registration with the app right here [link til webside om kørselsregistrering here. If you want to know how to make a digital mileage book according to SKAT, you can read it here.
3 key points about the 60-days rules 1. On day 61 with driving to the same workplace as the past 12 months, the employee can no longer receive tax free mileage indemnity. The employee will after this receive regular tax liable travel. 2. The employee has to drive his own car to be entitled to mileage indemnity. 3. It is only driving with a starting point and an ending point in the living place that are counted in the 60 days. |
The content of the post takes point of departure in informations from SKAT’s webpage.
