If an employee drives a company car, it is important to be aware of the rules regarding private use of the car.
These rules depend on how the company car will be used.
A “Statement No Private Use of Car” plays an important role in this.
But what exactly does this statement entail and what are the consequences for your employees and what can you as an employer do to help your employees with this?
In this article, we explain how EasyTrack combined with a Private/Business switch in the car can help record private and business mileage incurred and avoid exceeding the annual maximum 500 private miles.
What is the no private car use statement?
If an employee drives a company car, it is important to be aware of the rules regarding private use of the car.
These rules depend on how the company car will be used.
A “Statement No Private Use of Car” plays an important role in this.
But what exactly does this statement entail and what are the consequences for your employees and what can you as an employer do to help your employees with this?
In this article, we explain how EasyTrack combined with a Private/Business switch in the car can help record private and business mileage incurred and avoid exceeding the annual maximum 500 private miles.
What are the conditions?
In order to use the Statement No Private Car Use, a number of conditions must be met:
– Less than 500 kilometers per year are driven privately with the company car.
– It can be demonstrated that less than 500 kilometers per year are driven privately with the car, for example, by keeping a comprehensive trip log.
– The car is in the employer’s name.
– The employer consents to the use of the statement.
What if more than 500 kilometers are driven privately anyway?
However, if more than 500 kilometers per year are driven privately with the company car, the “Statement No Private Use of Car” will expire.
In that case, the employee must still pay an additional taxable benefit for the private use of the car.
The costs can be considerable.
It is therefore important to keep track of how many kilometers are driven privately and to stay within the 500 kilometer limit.
How can EasyTrack help?
EasyTrack is a system that keeps track of miles driven.
With EasyTrack, you easily register trips and differentiate between business and private kilometers.
This way you always have insight into how many kilometers your employees have driven privately and you can prevent them from going over the 500 kilometer limit.
EasyTrack offers comprehensive reports that allow you to easily prove that less than 500 kilometers per year have been driven privately.
These reports can be used as proof for the tax authorities.
EasyTrack has a functionality that warns you that 500 private kilometers will be reached.
This allows you to timely inform your employee and advise what to do.
Conclusion
The “Statement No Private Car Use” can be a convenient way to avoid additional taxable benefit for private use of a company car.
It is important to keep track of how many kilometers are driven privately and to stay within the 500 kilometer limit.
EasyTrack can help you and your employees with this by simplifying the tracking of trips and by providing extensive reports to prove that you meet the conditions.
And an additional advantage is that EasyTrack warns before the 500 private kilometer limit is exceeded.
Do you also want better insight into private and business trips of your fleet?
Would you like to help your employees with a company car to avoid addition problems? If so, please contact our product specialist.
