The company fuel card from the employer for the private car – a practical thing that makes life easier for many employees. But what is actually allowed and what is not? In this article, we clarify the most important questions about using a fuel card for a private car and give you valuable tips for its use.
What Does “Company Fuel Card for Private Car” Mean?
At its core, it means that the employer provides their employees with a fuel card that they are also allowed to use for refueling their private car. This can apply to both the commute to work and private trips. Sounds tempting at first, but also carries some pitfalls.
The Legal Situation: What’s Allowed, What’s Forbidden?
Using a company fuel card for a private car is generally allowed, but only under certain conditions. Tax law and employment law regulations play an important role here.
Tax Aspects:
- Benefit in Kind: If the employee also uses the fuel card for private trips, this represents a taxable benefit (or benefit in kind) that must be taxed.
- 1% Rule: The so-called 1% rule is often applied, where 1% of the vehicle’s gross list price is taxed monthly as a taxable benefit.
- Logbook: To accurately record the private use of the vehicle and thus the taxable benefit, a logbook must generally be kept.
Employment Law Aspects:
- Agreement in the Employment Contract: The possibility of being allowed to use the fuel card privately should be clearly regulated in the employment contract or a works agreement.
- Liability in Case of Accidents: It is important to clarify who is liable in the event of an accident when the vehicle was used privately.
Company car with fuel card
Advantages of a Fuel Card for a Private Car
Despite the legal framework, using a company fuel card for a private car offers some advantages:
- Cheaper Fuel Costs: Companies often receive better conditions at gas stations, which employees can also benefit from.
- Less Effort: Fuel costs do not have to be pre-financed and then submitted to the employer.
- More Flexibility: Employees are more mobile and can also make private trips on short notice.
Disadvantages of a Fuel Card for a Private Car
Besides the advantages, there are also some disadvantages to consider:
- Higher Tax Burden: The taxable income increases due to the taxable benefit.
- Documentation Duty: Keeping a logbook is time-consuming and can be prone to errors.
- Liability Risk: In the event of an accident, there can be uncertainties regarding liability.
Tips for Using a Company Fuel Card for Your Private Car
To make using a fuel card from the employer for the private car as smooth and advantageous as possible, you should consider the following tips:
- Clarify the Exact Conditions: Talk to your employer about the specific regulations for using the fuel card for a private car.
- Keep a Detailed Logbook: Document all trips with date, mileage, fuel quantity, and reason for the trip.
- Choose the Right Fuel Card: There are special fuel cards that facilitate the billing of private and business trips.
- Inform Yourself About the Tax Implications: If in doubt, seek advice from a tax advisor.
Mechanic explaining fuel card usage
Frequent Questions About Fuel Cards for Private Cars
Below, we answer the most frequent questions about using a fuel card for a private car:
- Can the employer prohibit the private use of the fuel card? Yes, the employer can prohibit the private use of the fuel card in the employment contract or a works agreement.
- What happens in case of misuse of the fuel card? In case of misuse, e.g., by refueling private vehicles of family members, employment law consequences up to termination may occur.
- Do I have to accept the fuel card if my employer offers it to me? No, accepting a fuel card is not mandatory.
Conclusion
Using a fuel card from the company for a private car can be advantageous for both employees and employers. However, it is important to know the legal framework and clearly regulate its use.
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