{"id":2787,"date":"2022-09-15T19:10:25","date_gmt":"2022-09-15T17:10:25","guid":{"rendered":"https:\/\/haas-eschborn.de\/?p=2787"},"modified":"2022-09-25T19:16:57","modified_gmt":"2022-09-25T17:16:57","slug":"car-allowance-model","status":"publish","type":"post","link":"https:\/\/haas-eschborn.de\/en\/car-allowance-modell\/","title":{"rendered":"Car Allowance Model: Advantages &amp; Disadvantages"},"content":{"rendered":"<div itemscope=\"\" itemtype=\"https:\/\/schema.org\/FAQPage\">\r\n<p style=\"text-align: justify;\">Despite increasingly environmentally conscious companies, they are still in vogue: company cars. Over five million such vehicles are currently in use on Germany's roads, transporting employers and employees from one appointment to the next.<\/p>\r\n<p style=\"text-align: justify;\">An alternative to the classic company car is the \u201eCar Allowance\u201c model, which is also becoming increasingly popular in Germany. Although this is not nearly as widespread as the classic company car, it does offer some advantages for employers and employees in terms of tax. Read our legal tip to find out what these are and whether a \u201ecar allowance\u201c model is worthwhile in your company instead of using a company car!<\/p>\r\n<br>\r\n<div class=\"inhaltsverzeichnis\">\r\n<p style=\"text-align: justify;\"><strong>Table of contents:<\/strong><\/p>\r\n<ul>\r\n<li style=\"text-align: justify;\"><a href=\"#tipp1\" title=\"Car Allowance briefly explained\">Car Allowance briefly explained<\/a><\/li>\r\n<li style=\"text-align: justify;\"><a href=\"#tipp2\" title=\"Advantages and disadvantages for companies\">Advantages and disadvantages for companies<\/a><\/li>\r\n<li style=\"text-align: justify;\"><a href=\"#tipp3\" title=\"Advantages and disadvantages for employees\">Advantages and disadvantages for employees<\/a><\/li>\r\n<li style=\"text-align: justify;\"><a href=\"#tipp4\" title=\"Car allowance and mobility allowance\">Car allowance and mobility allowance<\/a><\/li>\r\n<li style=\"text-align: justify;\"><a href=\"#tipp5\" title=\"Company car vs. car allowance\">Company car vs. car allowance<\/a><\/li>\r\n<li style=\"text-align: justify;\"><a href=\"#tipp6\" title=\"Individual advice on the Car Allowance model\">Individual advice on the Car Allowance model<\/a><\/li>\r\n<\/ul>\r\n<br \/>\r\n<\/div>\r\n<br>\r\n<br \/>\r\n<p style=\"text-align: center;\"><strong>Do you have individual legal or tax-related questions on this topic? Contact us now!<\/strong><\/p>\r\n<p style=\"text-align: center;\"><a href=\"tel:+496173318170\" title=\"Call now\"><span style=\"font-size:1.3em; color:#0B1E51;\"><i class=\"fa fa-phone\" ><\/i> 06173 - 318 170<\/span><\/a><\/p>\r\n<p style=\"text-align: center;\"><a href=\"mailto:info@haas-eschborn.de\" title=\"Send e-mail\"><span style=\"font-size:1.3em; color:#050B62;\"><i class=\"fa fa-envelope-o\" ><\/i> info@haas-eschborn.de<\/span><\/a><\/p>\r\n<p style=\"text-align: center;\"><span style=\"font-size:1.3em; color:#050B62;\"><i class=\"fa fa-location-arrow\" ><\/i> Rudolf-Diesel-Str. 5, 65760 Eschborn near Frankfurt<\/span><\/p>\r\n<p style=\"text-align: center;\">\r\n\t<a href=\"\/en\/contact\/#formular\" class=\"btn get-a-quote__link\">To the contact form<\/a><\/p>\r\n<br \/>\r\n<div itemscope=\"\" itemtype=\"https:\/\/schema.org\/Question\" itemprop=\"mainEntity\">\r\n<h2 itemprop=\"name\" class=\"anker\" id=\"tipp1\">How does Car Allowance work?<\/h2>\r\n<meta itemprop=\"answerCount\" content=\"1\"><meta itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\" content=\"Frank Haas - Rechtsanwalt und Steuerberater\">\r\n<div itemprop=\"acceptedAnswer\" itemscope itemtype=\"http:\/\/schema.org\/Answer\">\r\n<span itemprop=\"dateCreated\" style=\"display:none\">25.09.2022<\/span><meta itemprop=\"url\" content=\"https:\/\/haas-eschborn.de\/gar-allowance-modell\/\" \/>\r\n<div itemprop=\"text\">\r\n  <p style=\"text-align: justify;\">While a company or company car is usually provided by the company and can be used by the employee for business trips or privately, \u201eCar Allowance\u201c is a flat-rate car allowance. This is paid monthly by the employer to the employee if the employee undertakes to also use their private car for business purposes.<\/p>\r\n  <p style=\"text-align: justify;\">The car allowance model is particularly widespread in the USA and is also becoming increasingly popular in Germany. The company has a say in this, even if it is an employee's private car. If the employer classifies the private car as unsuitable, for example because the vehicle does not fit in with the company's desired image, the employer can veto it. In addition, the employer determines the scope of the insurance benefits for the vehicle and other regulations, for example regarding regular maintenance of the car, the maximum distance for business purposes and the maintenance of the vehicle.<\/p>\r\n  <p style=\"text-align: justify;\">As a rule, the company contributes ten percent of the costs, in exceptional cases up to 15 percent.<\/p>\r\n  <\/div>\r\n<\/div><\/div>\r\n<br><hr><br \/>\r\n<div itemscope=\"\" itemtype=\"https:\/\/schema.org\/Question\" itemprop=\"mainEntity\">\r\n<h2 itemprop=\"name\" class=\"anker\" id=\"tipp2\">Car Allowance: What are the advantages and disadvantages for companies?<\/h2>\r\n<meta itemprop=\"answerCount\" content=\"1\"><meta itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\" content=\"Frank Haas - Rechtsanwalt und Steuerberater\">\r\n<div itemprop=\"acceptedAnswer\" itemscope itemtype=\"http:\/\/schema.org\/Answer\">\r\n<span itemprop=\"dateCreated\" style=\"display:none\">25.09.2022<\/span><meta itemprop=\"url\" content=\"https:\/\/haas-eschborn.de\/gar-allowance-modell\/\" \/>\r\n<div itemprop=\"text\">\r\n  <p style=\"text-align: justify;\">A <strong>Advantage of the Car Allowance model<\/strong> is obvious: while a company car ties up a lot of resources at administrative level, the responsibility is transferred to the employee in the case of Car Allowance. Taxes, financing, regular maintenance and administrative work following an accident are the responsibility of the employee and not the employer. Costs are also saved on the company side. For example, the loss in value of the company car due to damage and wear and tear does not have to be compensated at the end of the leasing contract. In this way, the car allowance model clearly protects companies from careless treatment of company cars by employees.<\/p>\r\n  <p style=\"text-align: justify;\">The <strong>Disadvantages from a company perspective<\/strong> is a lack of access to the choice of vehicle and additional costs due to employees who nevertheless receive subsidies for little-used private cars. The employer's image can suffer if the company car does not match the company's image. In addition, little-used private cars that are nevertheless included in the company's car allowance model can be a cost trap due to the subsidy payable to the employee. In addition, the subsidy is fully taxable for companies.<\/p>\r\n<\/div><\/div><\/div>\r\n<br \/><hr \/><br \/>\r\n<div itemscope=\"\" itemtype=\"https:\/\/schema.org\/Question\" itemprop=\"mainEntity\">\r\n<h2 itemprop=\"name\" class=\"anker\" id=\"tipp3\">Car Allowance: What are the advantages and disadvantages for employees?<\/h2>\r\n<meta itemprop=\"answerCount\" content=\"1\"><meta itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\" content=\"Frank Haas - Rechtsanwalt und Steuerberater\">\r\n<div itemprop=\"acceptedAnswer\" itemscope itemtype=\"http:\/\/schema.org\/Answer\">\r\n<span itemprop=\"dateCreated\" style=\"display:none\">25.09.2022<\/span><meta itemprop=\"url\" content=\"https:\/\/haas-eschborn.de\/gar-allowance-modell\/\" \/>\r\n<div itemprop=\"text\">\r\n<p style=\"text-align: justify;\">The <strong>Advantages for employees<\/strong> consist above all in a greater degree of freedom. You yourself can decide to a large extent on the type of car, the equipment and external features of the car. Car Allowance is also financially worthwhile, as there is no need to declare a non-cash benefit in your tax return, as is the case with a company car (if it is used privately). In addition, unlike a company car, your own car does not have to be returned if your employment relationship with your current employer ends.<\/p>\r\n<p style=\"text-align: justify;\">A <strong>Disadvantage for employees<\/strong> is the greater personal organizational effort. This is not usually covered by the company and can lead to additional costs in the event of an accident or damage. In most cases, the purchase is also not discounted, as employees, unlike corporate customers, usually do not receive any major discounts or benefits. In addition, the flat-rate usage fee must be taxed, which is a financial disadvantage. In addition, companies often use company cars as a reward and feel-good factor for employees. With car allowance, this form of recognition is not directly possible.<\/p>\r\n<\/div>\r\n<\/div><\/div>\r\n<br \/><hr \/><br \/>\r\n<div itemscope=\"\" itemtype=\"https:\/\/schema.org\/Question\" itemprop=\"mainEntity\">\r\n<h2 itemprop=\"name\" class=\"anker\" id=\"tipp4\">Car Allowance and mobility allowance: how do the models differ?<\/h2>\r\n<meta itemprop=\"answerCount\" content=\"1\"><meta itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\" content=\"Frank Haas - Rechtsanwalt und Steuerberater\">\r\n<div itemprop=\"acceptedAnswer\" itemscope itemtype=\"http:\/\/schema.org\/Answer\">\r\n<span itemprop=\"dateCreated\" style=\"display:none\">25.09.2022<\/span><meta itemprop=\"url\" content=\"https:\/\/haas-eschborn.de\/gar-allowance-modell\/\" \/>\r\n<div itemprop=\"text\">\r\n<p style=\"text-align: justify;\">While the car allowance model is specifically about the use of a private car and the company's charges are based on this, the mobility allowance or mobility budget provides a monthly sum of money that can be used freely for transportation purposes.<\/p>\r\n<p style=\"text-align: justify;\">Whether employees use the train, bus, cab, car-sharing models or other means of transportation is entirely up to them. Normally, a fixed budget is contractually agreed. If there is a surplus, the money can be redistributed to retirement provision, for example. The mobility allowance is particularly popular with start-ups. Companies for which environmental protection is an important reference value make frequent use of it.<\/p>\r\n<\/div><\/div><\/div>\r\n<br><hr><br>\r\n<div itemscope=\"\" itemtype=\"https:\/\/schema.org\/Question\" itemprop=\"mainEntity\">\r\n<h2 itemprop=\"name\" class=\"anker\" id=\"tipp5\">Company car vs. car allowance: which model is better for me?<\/h2>\r\n<meta itemprop=\"answerCount\" content=\"1\"><meta itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\" content=\"Frank Haas - Rechtsanwalt und Steuerberater\">\r\n<div itemprop=\"acceptedAnswer\" itemscope itemtype=\"http:\/\/schema.org\/Answer\">\r\n<span itemprop=\"dateCreated\" style=\"display:none\">25.09.2022<\/span><meta itemprop=\"url\" content=\"https:\/\/haas-eschborn.de\/gar-allowance-modell\/\" \/>\r\n<div itemprop=\"text\">\r\n<p style=\"text-align: justify;\">There is no general answer to this question. With Car Allowance, you personally have more freedom. Company cars are mainly used for business purposes, but private journeys must be partially documented. In addition, the car must be returned and damage must be covered in accordance with employee liability. Furthermore, it is mandatory to pay tax to the tax office for private use due to a non-cash benefit. These are based on the gross list price of the car and can mean massive additional costs for luxury cars. With Car Allowance, you choose your own vehicle and determine the appearance and equipment yourself. However, you have a greater administrative burden and have to pay tax on the usage allowance.<\/p>\r\n<\/div><\/div><\/div>\r\n<br><hr><br>\r\n<div itemscope=\"\" itemtype=\"https:\/\/schema.org\/Question\" itemprop=\"mainEntity\">\r\n<h2 itemprop=\"name\" class=\"anker\" id=\"tipp6\">Legal and tax advice on the car allowance model<\/h2>\r\n<meta itemprop=\"answerCount\" content=\"1\"><meta itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\" content=\"Frank Haas - Rechtsanwalt und Steuerberater\">\r\n<div itemprop=\"acceptedAnswer\" itemscope itemtype=\"http:\/\/schema.org\/Answer\">\r\n<span itemprop=\"dateCreated\" style=\"display:none\">25.09.2022<\/span><meta itemprop=\"url\" content=\"https:\/\/haas-eschborn.de\/gar-allowance-modell\/\" \/>\r\n<div itemprop=\"text\">\r\n<p style=\"text-align: justify;\">Are you considering introducing a car allowance model in your company? Would your employer like to encourage you to use car allowance? We can provide you with comprehensive advice on all legal and tax issues.<\/p>\r\n<br \/>\r\n<br \/>\r\n<p style=\"text-align: center;\"><strong>Contact the law firm Haas und Kollegen now:<\/strong><\/p><br>\r\n<p style=\"text-align: center;\"><a href=\"tel:+496173318170\" title=\"Call now\"><span style=\"font-size:1.3em; color:#0B1E51;\"><i class=\"fa fa-phone\" ><\/i> 06173 - 318 170<\/span><\/a><\/p>\r\n<p style=\"text-align: center;\"><a href=\"mailto:info@haas-eschborn.de\" title=\"Send e-mail\"><span style=\"font-size:1.3em; color:#050B62;\"><i class=\"fa fa-envelope-o\" ><\/i> info@haas-eschborn.de<\/span><\/a><\/p>\r\n<p style=\"text-align: center;\"><span style=\"font-size:1.3em; color:#050B62;\"><i class=\"fa fa-location-arrow\" ><\/i> Rudolf-Diesel-Str. 5, 65760 Eschborn near Frankfurt<\/span><\/p>\r\n<p style=\"text-align: center;\">\r\n\t<a href=\"\/en\/contact\/#formular\" class=\"btn get-a-quote__link\">To the contact form<\/a><\/p>\r\n<p style=\"text-align: justify;\"><img decoding=\"async\" src=\"https:\/\/haas-eschborn.de\/wp-content\/uploads\/2020\/10\/Daumen-hoch.webp\" alt=\"Lawyers and specialist lawyers in Eschborn near Frankfurt\" width=\"800\" height=\"600\" class=\"aligncenter size-full wp-image-3304\" \/><\/p>\r\n<\/div><\/div><\/div>\r\n<\/div>","protected":false},"excerpt":{"rendered":"Despite increasingly environmentally conscious companies, they are still in vogue: company cars. Over five million such vehicles are currently in use on Germany's roads, transporting employers and employees from one appointment to the next. An alternative to the classic company car is the \u201eCar Allowance\u201c model, which is also becoming increasingly popular in Germany. Although this is","protected":false},"author":2,"featured_media":2789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44,50,43],"tags":[],"class_list":["post-2787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arbeitsrecht","category-steuerberatung","category-tipps-ratgeber"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Car Allowance Modell: Vorteile &amp; Nachteile<\/title>\n<meta name=\"description\" content=\"Was ist besser: Car Allowance Modell oder Dienstwagen? Vor- und Nachteile f\u00fcr Arbeitnehmer &amp; Arbeitgeber | Arbeitsrecht | Steuerrecht |\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/haas-eschborn.de\/en\/car-allowance-model\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Car Allowance Modell: Vorteile &amp; Nachteile\" \/>\n<meta property=\"og:description\" content=\"Was ist besser: Car Allowance Modell oder Dienstwagen? 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