Updated Rules Regarding Mileage
As an active user of Factofly, you have the opportunity to get tax deductions for your travel related to a task or invoice.*
Before you can get a travel deduction for using your own car, we need to verify your vehicle.
📑 Upload the vehicle registration certificate for the vehicle, which can be associated with you or a person in your household. If we can approve and connect your vehicle to the household, you will be able to report your mileage.
🚗 Create a travel entry. When you create a new mileage deduction, you must link it to the task/invoice for which the travel was conducted. Mileage can only be recorded for tasks where your customer has approved the mileage.
Upload photographic documentation. You need to submit a photo of your odometer at the beginning and end of each trip to accurately capture the mileage covered. These photos serve as essential documentation for your mileage deduction claims.
Enter the start and end addresses. You must enter the "From address" and "To address" for each trip. This information must accurately reflect your starting point and destination to comply with SKAT's documentation requirements.
Specify the travel date.
Submit the travel entry.
Why do we need photographic documentation?
As an employer, we need to ensure that we comply with the Tax Administration's requirements regarding documentation and control of travel allowances. This includes documenting that the travel was conducted in your own vehicle in connection with work performed through the employer.
Approval & Payment of Mileage
Your mileage will be approved/rejected in connection with your salary payment. You can only get a deduction for travel associated with a task where your customer has agreed to cover mileage costs.
The travel must be part of the agreement with your customer, meaning that the travel should be invoiced to the customer in addition to the work you do for them. You must ensure this is clearly stated on both the task and the invoice.
It is your responsibility to ensure that the recorded travel complies with the provided guidelines.
Approved travel is paid as a tax deduction on your payslip. You will not receive your travel as an additional payment from us.
Government Rates for Using Your Own Car in 2024:
Up to 20,000 km annually: 3.79 DKK per km
Over 20.000 km annually: 2.23 DKK per km
Your registered travel will be continuously reconciled and linked to your salary payments.
Additional Terms
It is only possible to receive tax-free travel allowances for 60 days of travel between your home and a workplace within a preceding 12-month period. The 60-day rule applies per workplace. This means you can receive tax-free travel allowances for every workday if you have multiple workplaces.
** The shortest route between the two points should match the driven kilometers as indicated on the car's odometer. In case of significant deviations, we reserve the right to reject your travel.
*** We conduct random checks of your travel. The random check may consist of us calling the customer to confirm the travel or obtaining proof of the travel in another way.