Mileage compensation, food benefits and allowances in 2024 – everything you need to know
Updated: February 12, 2024, 8:43 AMPublished: February 12, 2024, 8:34 am
Do you drive your private car to work? Are you thinking regarding inviting your employees to lunch but are not completely sure what is involved? And how was it once more with allowances, will the new year mean any major changes? Stay tuned as we explain all the news for 2024.
We start with the dear mileage allowance, which is used to cover part of the expenses for fuel, wear and tear and service on the car. When you use your private car for work, the employer usually pays a tax-free mileage allowance. This means that the company pays compensation to you that amounts to the same amount as the tax-free mileage compensation. In this way, there will be none tax but you receive tax-free compensation from your company. Of course, this will be a cost for the company, but it would also be if you took, for example, the train instead of the car.
Some companies also pay extra mileage compensation, in addition to the one that is tax-free. The excess part is instead taxed as if it were salary. For self-employed people, it is normal to only take out the tax-free mileage allowance and then other allowance can be taken as regular salary.
The mileage allowance – the same as in 2023
Between 2008 – 2022, the mileage allowance was SEK 18.50/mile. And of course it felt a little strange that the tax-free mileage allowance was not adjusted for so many years. Especially when the costs of both company car and fuel have increased significantly. But in 2023 it was time to throw out the old and bring in the new.
On January 1, 2023, the tax-free mileage allowance increased from SEK 18.50/mile to SEK 25/mile, regardless of fuel. This applied to you who use your private car for business trips. And for you with a preferential car, the mileage compensation landed at SEK 12/mile, with the exception of electric cars, which will be SEK 9.50/mile. And the same sums apply for 2024, so there will be no new increase when it comes to mileage compensation.
Discount car – everything you need to know
Food allowance – this applies in 2024
Are you thinking of starting the new year by treating your employees to a real braklunch? Then it is worth knowing that the dietary benefit for 2024 has changed. But before we jump to the change, we take a little recap on what dietary benefit actually means.
So, a nutritional benefit arises when you as an employer offer your employees some kind of meal. Generally, it applies to breakfast, lunch or dinner, perhaps in connection with a business trip.
Since the employee saved money by being invited, it counts as a taxable meal allowance. And as with all other benefits must the employee then pay a benefit tax.
In the case of food allowance, the taxation in turn takes place according to a standard amount. The idea is that the sum should correspond to what an average lunch, for example, costs if your employee were to eat it in a restaurant. In addition, it will be easier for you as an employer to keep track. It can easily get messy with all the numbers if you have to know what each individual lunch costs.
So when the clock strikes 00:00 on January 1, 2024, the taxation will be a little higher for your employees if you want to offer a meal or if you are away on a business trip. The new standard values are as follows:
• Free breakfast: SEK 60
• Free lunch or dinner: SEK 120
• Board for a full day: SEK 300
Then there are also exceptions to the rule on meal allowances, for example if you invite a client to lunch in connection with representation, then no benefit arises for you.
Remuneration will increase in 2024
Are you one of those who are often on business trips or perhaps temporarily working in another location? Then you are right to update yourself on the most important rules regarding allowances for 2024. The allowance exists as a form of allowance for you to cover your living expenses when you are out on a business trip. And when we enter 2024, the maximum tax-free allowance amount will be increased from SEK 260 to SEK 290. This applies to allowances for full days. For half days, the allowance is reduced by half, just as before.
The price base amount for allowances is adjusted according to the prevailing price trend. With increased interest rates, fuel and prices in general, the price base amount for allowances also follows the same development. And lucky it is. Keep in mind, however, that the maximum amount, i.e. SEK 290, applies to work in one and the same location for a maximum of three months.
Om Wint
Wint automates service company accounting. This means that we take care of everything for them, from company start-up to closing the accounts. We send all declarations, all VAT, make sure you get paid and that everything is taken care of correctly. This means that you as an entrepreneur can focus on your own core business, or if you prefer, think regarding something completely different.
The article is produced by Brand Studio in collaboration with Wint and not an article by Dagens industri