For mileage reimbursement and deduction of car expenses, it is necessary to know what proportion of the kilometres driven by car is business-related. This information should be recorded in the logbook. The UKKO service has a logbook feature where you can quickly and easily record the number of kilometers driven by your car.
Please note that with the UKKO Light Entrepreneur with business ID service, you can only deduct car and mileage expenses if you use your car for less than 50% of your business trips. You cannot therefore deduct your car in your accounts. However, you are entitled to mileage reimbursement and we will ask you for the mileage you drive when you submit your tax return. So remember to keep a logbook and add the kilometers you are asked about to our tax return questionnaire, which opens at the beginning of each year.
If you use a car that has more than 50% of its mileage done for business purposes, the car is counted as business property, i.e. it is deducted from your accounts. In this case, we recommend the UKKO Entrepreneur private trader service. The entrepreneur is then entitled to deduct all expenses related to the car for business tax purposes. These may include fuel costs, insurance, maintenance and repair costs.
Please note that kilometers driven between work and home are not considered as working time. These are classified as private journeys and can be deducted on the entrepreneur's personal tax return. The deductible for these is €750.
In the service we make additional deductions for travel expenses declared on behalf of the entrepreneur in the business tax return and also send it to the tax authorities.