Legal Advice on Car Allowance and Car Lease

Questioner

I currently have a lease car from my employer. The lease contract expires in May 2018. I work as a consultant, every day I go to customers and have a remote office, which means that everything is worked digitally, so I have no workplace or a fixed office address. My direct colleagues are in the UK and DE, my manager in the UK. In the personnel handbook it says that employee can choose a so-called Car Allowance amount that is equal to the lease budget. In my case that is 700 EUR. I asked HR to calculate if I no longer want a lease car but arrange for my own car. the calculation came as follows: the 700 EUR will be split into 2 parts: 1- 485 EUR tax free (based on a travel allowance, to go to the office every day with a maximum of 75KM one way trip 2- 215 EUR taxed (Remainder of EUR 700) in addition. If I travel from home to a customer 70 km from my home address, I cannot declare anything as I have already received compensation for 75 km. Firstly, the employer now uses the car alliance as travel expenses. They tell the tax authorities that I come to the office every day, while I never go to this office. secondly, if I make a comparison if they pay out the EUR 700 gross and then reimburse every kilometer driven, then I miss out on at least EUR 350 (based on 2* 80KM daily). The company also has another office location which is 30 KM away from my home address, Employer uses the most attractive option for them and not for the employee. My question is: Can the employer simply split the gross amount into two parts? - Is the employer allowed to do this from the tax authorities given that I never come to this office? - Can I ask my employer to use the closest office in my case in the calculation instead of the most distant address, as this saves a few 100 euros per month? NB I can send an example of the calculations if this helps to get a better picture. Thank you in advance.

Lawyer

Dear sir, In addition to employment law aspects, there are also fiscal aspects. In order to review and assess the matter, I would like to receive the calculations. For this purpose, you can contact me directly.

Questioner

Good afternoon, Thanks for the reaction. In the meantime my employer has acknowledged that the calculation was wrong. Employer will pay the lease compensation gross and then pay each driven km based on Method 1 of the Tax Authorities (0.19) per KM. Thanks again for your response

Lawyer

You're welcome. Glad the problem is solved.