Almost all of you get too little mileage allowance

If you use the car to drive to work, your employer may give you a tax-free mileage allowance of 21 cents. But that is nowhere near enough, the Association of Business Drivers calculated.

Until recently, the untaxed mileage allowance was 19 cents. That has been the case since 2006. Originally, the amount was supposed to go up in 2024 and 2025, but the government has brought that forward a year because of the high fuel costs.

Mileage allowance increased early

The kilometer amount went from 19 to 21 cents on 1 January. Next year another cent will be added. But to cover costs, the fee must be 31 cents, according to the Association of Business Drivers.

More than 80 percent receive too little

The organization held a poll on the website and asked visitors how much mileage reimbursement they receive. Almost half receive 21 cents and 23 percent even less than that. Only a small group (16 percent) is lucky and gets 31 cents or more.

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In total, 84 percent of the respondents therefore receive too little mileage allowance, according to the VZR, because there are also employees who receive nothing at all from their boss for the use of their private car.

Payroll tax on compensation above 21 cents

Incidentally, an employer who pays his employees more than 21 cents per kilometer must withhold payroll tax on the part above.

Fuel prices still high

Fuel prices exploded last year, forcing many workers to focus on their travel expenses. In June 2022, the national suggested retail price of petrol even rose to more than 2.50 euros.

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It has now fallen considerably, but is still high compared to the time before the war in Ukraine. For petrol, the suggested retail price is now 1.99 euros. Diesel is a lot below that with 1.80 euros.

Electric car less popular among used car buyers

LPG is of course still the most affordable fuel, but the time when you could fill your ring tank for 60 cents per liter is over. At the time of writing, the suggested retail price is 1.11 euros.