EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Expert group opinion on shared cars
The payroll tax expert group has published some practical examples regarding the tax treatment of shared vehicles.
As announced in a letter dated 15 May 2024 by the State Secretary for Finance, the Tax and Customs Administration has published a number of practical examples in this expert group opinion to clarify how the rules concerning the use of shared vehicles by employees should be applied.
Considering that a shared vehicle has not been defined for tax purposes, the existing tax rules which apply in payroll tax to salary in general and transport in particular, have been adopted.
The expert group opinion provides seven examples. These examples include situations where the employee books the car, the employer books the car for the employee, as well as a situation where a mobility budget is used.