“Company car without fuel card” – a term that makes many employees’ alarm bells ring. Sounds like extra effort and hidden costs at first, right? Don’t worry, it’s not that bad!
Imagine this: You get a company car, you can use it privately, but you have to take care of refueling yourself and initially pay the costs out of your own pocket. Sounds unusual at first, but it can definitely have advantages.
“Many of my clients are surprised when I explain the financial advantages of a company car without a fuel card to them,” says tax advisor Markus Schmidt. “Often it is even cheaper than a car with a fuel card, especially if you drive economically.”
The Pros and Cons in Detail
Advantages:
- Higher Net Pay: Because the taxable benefit for private use is lower, you get more net pay.
- Full Control Over Fuel Costs: You have a clear view of your actual fuel expenses and can save money by refueling strategically.
- Flexibility: You are not restricted to specific gas stations and can choose where to fill up.
Disadvantages:
- Upfront Payment: You need to pay for fuel upfront and will be reimbursed by your employer later.
- Administrative Effort: You need to collect and submit fuel receipts, which can be an extra hassle.
- No Access to Company Discounts: You lose out on any fuel card discounts your employer might offer.
Is a Company Car Without Fuel Card Right for You?
Whether a company car without a fuel card is right for you depends on several factors, like your driving habits, local gas prices, and your employer’s expense reimbursement process.
Tip: Get detailed information about the terms beforehand and don’t hesitate to discuss options with your employer.
FAQs About Company Cars Without Fuel Cards:
- Do I have to pay for fuel out of pocket?
- How does fuel cost reimbursement work?
- What receipts do I need to submit?
- Are there any tax implications?
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