I consider my actual business-related expenses to submit, so also the cost of my commute with the car. But can I use the loan that I am entered into for the purchase of my car, also the tax bring in?
First things first. Employees have the choice to pay their own costs to prove, or to opt for a lump sum. The lump sum is a minimum, where you always have the right. The evidence of the actual costs is only interesting if your actual costs are higher than the lump sum.
Caution: in case of “mixed costs” – i.e. costs done partly for business and partly for private purposes must be divided (prorated). You may, after all, only that part subtract that relates to your profession.
Commuting to and from work
If you choose your actual business-related expenses to prove the car expenses for commuting fixed at 0.15 euro per kilometre. This fixed amount is required to be applied, you may be the actual costs not to prove it.
But for all other business travel, such as contracts by the employer, should the actual cost prove. These costs are generally only deductible up to 75 percent.
But for the cost of financing a car is an exception. They are not subject to this limitation. This includes the interest and other financial costs of loans for the purchase of a car.
Caution: it is not the full loan amount. The purchase itself can depreciation be included in deductible expenses (subject to the 75 percent restriction), just as the cost of fuel, maintenance costs, …
All this results in the following steps:
- Limitation of the occupational part: calculation of the relationship between the professional use and private use
- Limitation to professional travel that is not commuting: the professional portion is allocated between costs related to commuting (flat rate of 15 euro cents per kilometre) and the other to business travel (real costs)
- Real costs: limitation to 75 percent: the still remaining portion of the costs should the rule be limited to 75 percent. But as I said, this last restriction is not for borrowing.
The experts of Wolters Kluwer answer daily a common belastingvraag that readers have set for ourselves. Do you have a question?