What is an electronic mileage log?
When you drive your personal car for work purposes, you are entitled to a mileage allowance. You or your spouse/partner must own the vehicle before you are entitled to the reimbursement.
Your employer pays the tax-free reimbursement with your salary. But before that can happen, the Tax Authority has specific requirements. Therefore, a mileage log must be kept, for example, with the help of Acubiz.
You can register mileage automatically with Acubiz
Use Acubiz as a digital mileage log to automatically ensure correct calculations with applicable rates.
Tax Authority's requirements for the content of a mileage log
A mileage log and account must meet several requirements before the Tax Authority approves it for payment of mileage reimbursement. It may result in a tax penalty for the employee and employer if it does not meet the criteria.
There are requirements for the following information:
- Employee’s full name, address, and social security number or work number
- Date of travel
- Where the employee is traveling from and to
- Number of miles driven
- Purpose of the trip
- Calculation of how much the employee has driven
- The rate the employee has used
It is the employer’s responsibility to verify that the above information is correct. After that, it must be approved and signed or stamped.
Tax Authority's requirements for receiving mileage reimbursement
By filling out a mileage log, you can receive tax-free mileage reimbursement that covers fuel, insurance, and vehicle tax.
But first and foremost, you must meet the following basic requirements:
- You must be employed somewhere where you receive a salary. For example, if you own a limited company, you must receive a salary for your work for the mileage reimbursement to be paid.
- Your income must not be classified as B income – otherwise, you are not entitled to reimbursement.
- The amount you receive in reimbursement must be based on the actual number of miles you drive for work purposes.
- You must keep a mileage log with the specific information mentioned earlier.
Keep track of your mileage account in the form of a digital mileage log
Whether you fill out a manual or digital mileage log is irrelevant. The most important thing is that you meet the above requirements and that the log contains correct calculations.
But even though it doesn’t matter whether you choose a manual or electronic mileage log, there are advantages to choosing the latter. Find out why below.
Benefits of an electronic mileage log via mileage accounting app
There are several ways to keep an electronic mileage log for registering mileage – for example, via a mileage accounting app.
Here are some examples of benefits:
- You can register your mileage directly from your pocket via your mobile phone
- You can get the complete overview and update the log faster
- Correct calculations due to automatic updating of rates in accordance with the Tax Authority’s rules
With Acubiz, you can also track your mileage in real-time through our integration with Google Maps, so you can avoid the manual work of filling out information.
Do you want to know more?
With Acubiz, you get an automatic and digital mileage log where the rates are automatically updated. That way, you minimize keystrokes and ensure that no errors are made.
It is the easiest and fastest way to keep a mileage log approved by Skattestyrelsen.
Contact us if you want to know how we can help your business or book a free online demo to learn more.