Many employees use their own car in the course of their job duties. They transport goods or company executives, meet with suppliers, or perform other important activities. Therefore, they require the director to transfer compensation for the use of a personal car. Its size can vary significantly in different situations, since it takes into account the characteristics of the machine, the actions performed by the employee and the norms established by law.
What are the reimbursed costs?
The amount of compensation for using a personal car depends on various factors. The leaders of many companies employ only specialists with their own machines, which allows them to cope with many job responsibilities.
Based on Art. 188 TC, an employee may require the company management to transfer compensation for the use of a personal car. To do this, he must prove that he had to incur certain expenses in order to fulfill the director's task. The head of the company pays the following funds:
- compensation for depreciation of property during its use for business purposes;
- actual costs associated with the operation of the car, represented by the cost of gasoline, repair or maintenance.
The amount of compensation should be discussed between the two participants in the employment relationship in advance, and also be fixed in writing. Typically, the procedure is performed in the process of concluding an employment contract. It is allowed to enter this information into an additional agreement to an existing employment contract.
What information is entered into the contract?
When assigning compensation to an employee for using a personal car, numerous vehicle parameters are taken into account. All information regarding the purpose of compensation is entered into the employment contract. These include:
- exact parameters of the machine owned by an employee of the company;
- the procedure for operating the car for business purposes;
- grounds for ownership of the machine, since the employee can be not only its owner, but also a trustee, as well as a tenant;
- the period during which the duties will be performed using the vehicle;
- exact amount of compensation;
- other costs associated with the operation of the machine;
- documents that must be prepared by the employee so that he can confirm his expenses on the car;
- the procedure on the basis of which funds should be transferred;
- terms during which compensation is paid to the employee.
If at least one clause of the contract is violated, the employee may refuse to use his machine for work purposes.
What are the costs offset?
Compensation to an employee for using a personal car is intended to cover the following costs:
- carrying out maintenance;
- payment of gasoline;
- stay in paid parking during the whole working day;
- car wash;
- other costs associated with operating the machine for business purposes.
When calculating this payment, it takes into account how quickly the car wears out, how much money is spent on refueling, and also what is the cost of scheduled maintenance. The employer has the right to demand from the employee the transfer of various checks or receipts confirming certain expenses.
What documents are required?
Compensation for the use of a personal car is assigned only upon the transfer to the employer of official documents confirming certain expenses. These documents include:
- waybills, which confirm that a particular machine was really used to solve the working issues of a particular company, and the form of this document is developed separately by each organization;
- cashier checks issued at gas stations or service stations;
- reports compiled by an employee of the organization;
- a magazine in which all movements of the employee in his car are recorded to solve work issues.
If there is an order, compensation is awarded for the use of a personal car. A sample of this document can be studied below.
Payout Taxation
The costs of enterprises associated with the maintenance of official vehicles are used to reduce the tax base during the determination of income tax. But this is only possible with official documents confirming such costs. At the same time, it is important that the machine is really used to solve working issues.
The following nuances are taken into account:
- no personal income tax is levied on compensation for using a personal car, and insurance premiums are not transferred;
- the amount of this payment should not exceed the norm established by law;
- if the compensation exceeds the norm, then the excess cannot be used to reduce the tax base for income tax.
This payment is assigned only during the period when an employee of the enterprise directly performs his labor duties. If he is on sick leave or on vacation, then the costs of compensation for the use of a personal car by an employee cannot be used to reduce the tax base for income tax.
How to issue?
Employers who hire employees who have their own vehicles for work should know how to properly compensate them for the use of the machine. For this, appropriate documentation is prepared competently. The procedure for awarding compensation involves the following actions:
- when employing a citizen, it is necessary that information on the need to transfer compensation be included in the employment contract, as the new employee will use his machine to carry out the tasks of the head;
- title documents for the car are transmitted to the employer, and this includes not only the certificate of registration, but also the TCP, and if the citizen is a proxy, then an additional copy of the power of attorney is used, on the basis of which he uses the car;
- Further, all conditions of cooperation are stipulated, which should be beneficial for both participants in the employment relationship;
- if a long-employed worker buys a car, which he begins to use for official purposes, then an additional agreement is formed to the existing employment contract;
- if a car is transferred for use by other company officials, an act of car transfer and acceptance is drawn up;
- monthly or weekly, an employee of the company draws up a report that indicates all expenses for a car used for business purposes;
- Numerous payment documents are attached to this report, confirming the expenses and submitted by various checks, invoices or other similar securities.
The car can be driven by the direct owner or other employees of the company, appointed by the responsible persons by order of the employer.
Issuing an order by the leader
Compensation for the use of a personal car is paid only with the competent execution of the necessary documents. This includes the publication by the director of the company of an order, on the basis of which a payment is assigned to the owner of the vehicle.
Instead of the constant issuing of orders, it is allowed to fix the need for calculating compensation payments in the local internal acts of the company.
The order form may be developed by each company separately. The following information is written in this document:
- name of the company in which the car owner works;
- the position held by him and F. I. O .;
- name and parameters of the car used for operation;
- conditions on which compensation is paid, for example, it can be represented by a fixed amount of money transferred to the employee at the end of each month, and can also be calculated on the basis of payment documents submitted by the employee to the employer.
The basis for the issuance of the order is an employment contract or an additional agreement. These documents must contain information that a particular employee uses his own car during the performance of labor duties.
What standards apply?
Compensation rates for the use of a personal car are necessarily taken into account by the company's management, since it depends on them whether it is possible to reduce the tax base for income tax on expenses associated with the transfer of compensation to the owner of the property, presented by the company employee. These norms are fixed at the state level. These include:
- if a passenger car is used, the engine capacity of which does not exceed 2 thousand cubic meters. see, then the payment rate is 1.2 thousand rubles .;
- if the engine capacity exceeds 2 thousand cubic meters. see, then the norm is 1.5 thousand rubles;
- if a motorcycle is rented, then the fee for it within the normal range is 600 rubles.
When using trucks, no norms are established in the law, since such expenses are included in another category of expenses of the company.
Can I rent a car?
Compensation for the use of personal income tax is not taxed, but it is used to reduce income tax only provided that its amount does not exceed the norms established in the legislation. But often it is required to transfer to the owner of the car an amount that exceeds this norm. To prevent the need to pay a significant tax, the head of the company may decide to draw up a lease with the employee.
When forming this document, it is taken into account whether a car with a crew will be rented or not. Additionally, this agreement prescribes information about the rules for servicing the machine.
Such an agreement is drawn up only in writing, but does not require notarization or state registration. The object of the agreement is the direct vehicle, therefore, information on its registration numbers is entered in the text, as well as data from the TCP and registration certificate are copied.
If an employee of the company uses the machine on the basis of a power of attorney, then when drawing up a lease, it will be necessary to involve the direct owner of the property. If a car is rented without a crew, then in addition to it a valid OSAGO policy is applied.
The nuances of using a loan mechanism
Since it is not paid with compensation for the use of personal income tax and other taxes, the employee often agrees to a specific way of registration, which is that the car is transferred using the loan mechanism to the employer. For this, the following nuances are taken into account:
- the process of applying the loan mechanism involves taking into account the requirements of Art. 689 Civil Code;
- under such conditions, the car is transferred to the company for use, therefore, not only the owner, but also other employees of the enterprise can act as a driver;
- it is the company that is obliged to deal with vehicle maintenance, its repair, accounting for gasoline, as well as other significant issues, which greatly simplifies the process of calculating personal income tax and organization taxes;
- it is allowed in the contract to indicate that the machine will be used exclusively by the direct owner;
- the advantages of using the loan mechanism include the fact that the process of determining the costs of the company for the maintenance and use of the car is simplified;
- the company must be the buyer of the insurance policy;
- It is not required to transfer to the employee any additional remuneration that has a limited amount;
- if the machine is transferred for control to another employee of the company, then the company management will have to draw up additional personnel documents.
The accountant must correctly make compensation in the 1C program for using a personal car. From the correctness of accounting depends on whether the company can count on reducing the tax base for income tax.
The nuances of drawing up a GPC agreement
Another possibility for using a personal auto worker for the purposes of the company is the drafting of a GPC agreement between the company management and the direct car owner. This agreement is an alternative to an employment contract.
Under such an agreement, the employee is the contractor, and the company is the customer. Such cooperation is not regulated by the provisions of the TC.
Is it possible to challenge the amount of compensation?
Calculation of compensation for the use of a personal car should be based on documentation submitted by the employee to the accounting department of the company. But often even experienced professionals make mistakes that are usually identified by tax inspectors in the process of checking the organization.
The most frequently disputed amount is the payment by employees of the Federal Tax Service. There may be several reasons for this:
- lack of payment documents presented by checks, invoices, orders or other papers;
- the procedure for using a machine owned by an employee of the company for organization purposes is incorrectly drawn up;
- there are no various important documents for the car submitted by the STS or PTS.
The contest is carried out in court. Often, the reason is even that the car is handed over by a citizen, who can use it on the basis of a usual, not a general power of attorney, and therefore does not have the right to transfer the car for use to third parties.
Rules for the payment of compensation for the use of a company car for personal purposes
Another is the situation when an employee receives a car from an employer. It is used to solve important issues, but often the employee needs to use it for personal purposes. This raises the question of how to properly arrange such a relationship. Therefore, the following features can be used for this:
- verbal agreement between the head and employee of the company;
- drawing up a lease agreement with a company employee;
- publication by the leadership of the order on the transfer of the vehicle to the employee.
When calculating the costs of the company takes into account information from waybills and odometer indicators. In this case, you can determine the mileage during working hours. If you have used a company car for personal use, compensation may not be paid to the head of the company by an employee.
Conclusion
Many companies hire only employees with a personal car, which is then used to solve business issues. In this case, the car owner can expect to receive a certain compensation, and its size depends on the real expenses that you have to face when solving work problems with your personal car.
The amount of compensation must not exceed the norms established in the law, otherwise such expenses cannot be used by the company to reduce the tax base for income tax. Often, accountants violate the rules for calculating this payment, which leads to a challenge by tax inspectors in court.