As a business owner, you often have to choose how you will drive your business miles. Will you put the car on your business or use a private car? This choice can be complicated, especially if you are just starting out and the tax rules are new to you. To make it clear, we have listed the different options for you so you can easily make the right decision.

1. Using private car for business mileage
Many self-employed people choose to use their private car for business trips. Driving business kilometers with your private car is a common option. You continue to drive your private car and declare €0.23 per business kilometer. While this does not cover all your car expenses, it is an easy way to keep your records. This option is often advantageous if you drive few business miles. Another option is to calculate what percentage of your total mileage is business and calculate your car expenses based on that. Suppose you drive 20,000 of the 25,000 kilometers business to business, then you can charge 80% of your car costs, such as fuel, maintenance and insurance, to your business. Of course, make sure you have accurate mileage records and keep receipts of car expenses in your records.
2. Putting car on the business without private use
If you choose to use your car for business purposes and only use it for business purposes, you can drive a maximum of 500 kilometers privately each year. If you stay under this limit, you will not pay any additional taxable benefit. This is an interesting option for business owners who want to limit their car business and private driving. You can deduct all business car expenses, such as gasoline, insurance and maintenance, from your profit. Don’t forget to file a “statement no private car use” with the tax authorities and keep a comprehensive trip administration.
3. Putting car on business with private use
If you, as a self-employed person, put the car on the company’s books and also use it privately, you may use the car for private journeys without mileage restrictions. In exchange, however, you pay an additional taxable benefit. The amount of the addition is calculated based on the catalog value of the car and serves as compensation for private use. This is often a convenient option for self-employed people who want to put their car on the company’s books and drive both business and private at the same time without complex trip records.
Private or company car: What is additional tax?
Additional taxable benefit is the amount that is added to your income when you also use the company car privately for more than 500 kilometers per year. How much you pay in additional tax liability depends on the CO2 emissions and the list value of the car. In 2024, an additional tax rate of 16% applies to fully electric cars up to a list value of €30,000, and 22% above that. For gasoline and diesel cars, the standard rate is 22%. Sample calculations:
- You buy a €50,000 electric car and also use it privately. You then pay 16% on the first €30,000 and 22% on the remaining €20,000, amounting to an additional taxable income of €9,200. With a tax burden of about 30%, you effectively pay €2,760 in taxes. This makes choosing between private or company car an important decision financially.
- For a car under 15 years old, with a list value of €40,000, you also pay 22% additional tax, even if the current value of the car is lower.
Car business and private driving: What are the benefits?
When you drive both business car privately and use the car for work, it is important to look at the benefits and taxes you have to pay. Especially with car business and private driving comes additional taxes, which can often be tax advantageous depending on your situation.
Youngtimer scheme: tax benefit for cars over 15 years old
A car that is 15 years or older may qualify for the youngtimer scheme, an attractive tax scheme. Instead of paying additional tax on the original catalog value, you pay additional tax on the lower daily value of the car. Suppose you buy a car with a current value of €5,000, while the original catalog value was €40,000. Thanks to the youngtimer scheme you pay an additional taxable benefit of €1,100 instead of €8,800. So the tax advantage with a youngtimer can be considerable!
Which option suits you?
The choice between private or company car for business mileage depends on your personal situation. There is no one-size-fits-all solution. The rules change regularly and several factors come into play. To make the right decision, it is important to know what is most advantageous for you. Our team of specialists is here to help you with this. Simply schedule a no-obligation appointment and find out which option is best for you.