Change in fixed travel allowance starting in 2022

Change in fixed travel allowance starting in 2022

That the corona crisis has permanently changed commuting is a fact. The frequent working from home is an important factor in this. Even after the corona crisis, it is quite possible that people will continue to work from home, which has major implications for travel reimbursement. As of Jan. 1, 2022, the fixed travel allowance is going to change.

Untaxed travel reimbursement

Earlier, we wrote that as of Oct. 1, 2021, it is no longer allowed to give employees untaxed travel expense reimbursement for days spent working from home. Only actual travel days may still be reimbursed tax-free. However, the untaxed travel allowance will not end on Oct. 1, 2021; it is one of four tax measures that will remain in effect until Jan. 1, 2022.

Current rules

Currently, due to the corona crisis, it is still possible to offer employees a flat-rate commuting allowance. For now, employers are allowed to consider employees' home work days as travel days for the purpose of calculating the fixed commuting allowance. In this way, employers can continue to pay travel expenses untaxed. The condition, however, is that these are fixed allowances that were already granted by the employer before March 13, 2020.

Looking at new travel behavior

As of January 1, 2022, the current rules will expire. A home working day may then no longer be considered a travel day. Unless the employee travels to the office for at least 36 weeks or 128 days, travel reimbursement may no longer be paid on the home work day. Travel reimbursement must be adjusted to the new pattern. The Internal Revenue Service explains that this means that travel reimbursement may not be based on the travel behavior the employee exhibited before the first lockdown in March 2020.

Charting new travel behavior

If an employee travels to a fixed workplace for at least 36 weeks or 128 days per year, then the fixed travel allowance may still be paid out untaxed starting Jan. 1, 2022. Is that not the case? Then travel expenses must be paid on the basis of subsequent calculation or declaration. The employer will then only pay the days that actual travel took place, up to a maximum amount of €0.19 per kilometer untaxed. It is therefore important to map out the travel patterns of employees.

Also read about the change in travel allowance on loket.nl