Why driving allowance: It is a simple reason to give employees driving allowance. When an employee makes his own vehicle available for his work, there are expenses. The driving allowance naturally covers petrol/diesel but also other expenses such as insurance, depreciation and maintenance.

Requirements for payment of driving allowance: When a company has to pay driving allowance, it must appear on payslips and the amounts must be after tax. The employee has had outlays for driving expenses of money on which tax has already been paid. Therefore, no AM contribution or A tax must be paid on the driving allowance.

The employer has duty to register all driving for which driving allowance must be paid. This could be, for example, registration on driving tickets or a driving log.

Current rates: The state determines which rates apply to the driving allowance. This is based on the price development of petrol and diesel. The rates can both rise and fall. As a rule, this only happens once a year, but in very special circumstances it can happen more often.

From 1 January 2024, the rates below apply.

Up to 20,000 km per year gives DKK 3.79/km.

Over 20,000 km per year results in DKK 2.23/km.

Calculate your driving allowance: If you want to know how much you can expect to receive in driving allowance, you really just need to know how far you have driven and the applicable rates per km. The amount is tax-free. You can think of it as a financial benefit intended to help financially with the expenses when you drive your privately owned vehicle on behalf of company you work for.

With TrackMe’s electronic driving log, it becomes easy to keep a driving log. All your trips are registered in a unified system automatically. With just a few clicks, you have to choose the trips you need money for. You then pick up the attachment for your driving which you give to the accounting department in the company. TrackMe makes it easy for you.