Using a company car for private purposes is a common privilege, but it comes with a flat-rate fee. Engine power and drive type depend on this amount, which influences the final tax settlement. Applying the right rules can bring tangible financial benefits to the employee and enable effective cost and VAT management in the event of mixed use. Learn about the applicable limits and the laws that allow you to optimize your company fleet expenses.
How much is the flat-rate allowance for private use of a company car?
Use company car for private purposes it is free of charge taxable. The amount of the lump sum depends on the engine power and drive type. The key principles for calculating this benefit are:
- a lump sum of PLN 250 for electric and hydrogen cars,
- rate of PLN 250 for engines with a power of up to 1600 cm³,
- PLN 400 for PHEV hybrids and more powerful cars,
- charging 1/30 of a lump sum for each day of use,
- reducing income by employee contributions,
- no tax for parking a vehicle in front of the house.
Parking in front of the house does not generate additional costs because it serves protection of company propertyIf the car is used for private purposes only for part of the month, the lump sum is reduced. proportional reduction.
Does the flat rate for private driving include fuel and social security contributions?
the use of a company car for private purposes is based on lump sum, which significantly reduces the burden on the employee's budget. It's worth knowing how individual operating costs are calculated in this formula:
- purchase costs fuel,
- periodic inspections technical,
- seasonal tire replacement,
- journeys toll highways,
- parking fees parking lots.
Although the flat rate covers fuel and service expenses, highway and parking The employee must usually pay for this themselves. The value of this benefit is considered incomefrom which the fees are collected social and health insurance contributionsSettlement takes place automatically on payroll, which ensures complete clarity.
Users benefit the most electric carsIn the case of vehicles charged at home, energy cost reimbursement is not treated as income. Therefore, this amount is not subject to taxation or social security contributions, which makes "electrician" an extremely profitable choice for an employee.
How to settle costs and VAT when using a car mixed?
Exploitation company car for private purposes, i.e. the so-called mixed use, is a solution that combines convenience with tangible benefits. Entrepreneurs who choose this model gain time by forgoing the tedious mileage allowances.
When choosing this settlement method, it is worth knowing the key rules:
- deduction 50% VAT on fuel and service,
- passing 75% of expenses to the costs of obtaining income,
- no need to submit a form VAT-26,
- the possibility of free use of the car for private purposes,
- simplified accounting without documenting each route.
The tax base is the sum of the net amount and the undeducted portion of VAT. Full deduction 100% VAT requires rigorous registration and registration of the car as exclusively company-owned. The exceptions are heavy goods vehicles over 3,5 tonnes, which are not subject to these restrictions. For most companies mixed model is the optimal choice, providing freedom without unnecessary formalities.
What depreciation limits apply to combustion and electric cars?
Adding a car to the company's assets requires excellent knowledge of the current tax limitsCurrently, these thresholds are 150 zł for combustion and hybrid models, while in the case of cars electric and hydrogen the limit is higher and reaches 225 złThese values directly limit the height depreciation write-offs and the capital part of leasing installments.
When optimizing the costs associated with a company vehicle, the following factors should be taken into account:
- applying a value limit when settling AC insurance,
- full deduction of third party liability and accident insurance costs regardless of the car price,
- proportional accounting of the surplus above the statutory range,
- the upcoming reduction of the limit for combustion cars to PLN 100 from 2026 (planned changes),
- simplification of formalities for vehicles used in mixed mode.
A reliable approach to calculations helps avoid costly errors and facilitates efficient expense management. Monitoring changes in regulations is crucial to maintaining financial liquidity when settling the modern fleet in your company.
How to settle the tax on a private car used for business purposes?
Exploitation private car in business activities it does not require entering it into fixed asset recordsIn this model, the business owner can include the costs of obtaining income 20% of expenses for fuel, service, or insurance. However, slightly different rules apply to employees who require detailed vehicle mileage records.
The billing system is based on specific rates: 0,89 PLN per kilometer with smaller engines and 1,15 PLN for larger capacity units (in accordance with current regulations). Properly maintained documentation provides the company with numerous benefits:
- no need to pay tax on amounts up to the limit,
- full security during tax audits,
- precise monitoring of operating costs,
- facilitating the work of the accounting department,
- the ability to verify the appropriateness of business trips.
To avoid ambiguity, each entry in the register should contain date, destination and number of kilometers traveledMeticulous document collection is the best insurance policy against official verification, allowing you to maintain full financial transparency and optimize your expenses.