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What is a travel allowance?

Aske Buemann

CEO & Co-founder

Travel deductions

Travel deductions are one of the most overlooked deductions. Epinion has found that almost 1 million Danes miss out on the deduction every year. This corresponds to up to DKK 11 billion a year in travel deductions that are not reported to Skat.

The same survey found that 42% of Danes travel for work each year. Even if you travel for just one day, you can get up to DKK 728 per day in deductions (in 2019). Even if the employer covers both meals and hotel, there can still be money to be made. We will come back to this further down in the article.

In this article we will go through:

  • What travel deductions are
  • Cases where your employer already covers your expenses
  • Other conditions to be aware of
  • Whether you can get deductions yourself

What is a travel allowance?

Travel allowance is a deduction you can get if you have been traveling for work. It is intended to cover the extra expenses you may have in connection with the trip. the trip.

This can cover anything from paying for your own accommodation, to paying for individual meals, or simply paying for the train ticket to the airport or a bottle of water.

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What if my employer gives me an 'allowance' or 'subsistence allowance'?

Some workplaces choose to pay so-called "tax-free travel allowances" or "per diems". This means that your employer pays an amount directly into your bank account based on an estimate of your expenses.

It is particularly important to check whether you have been paid enough by your employer. If they pay less than the tax authorities' own rates, you can still get a deduction.

There are also cases where the employer has only reimbursed you for meals (board) and hotel (accommodation) but not for so-called "small necessities". You will still be able to deduct these.

If you have been organized enough to keep your receipts, you can also claim a deduction if you ended up having more expenses than your employer expected.

Find out how to check if you have money to claim at the bottom of this article.

What if my employer reimburses my expenses? Or I have a company card?

Some workplaces choose to reimburse your expenses instead. If this is the case for you, there are still several things worth checking. Even if your employer has paid all your expenses, you may be entitled to a deduction for "minor necessities". This is calculated per day of travel and can quickly add up over a year. You can also claim a deduction if there are meals or other travel expenses that your employer does not reimburse, but you still have the receipt.

If you have a company card instead, the same deduction for "small necessities" applies. So even if your employer has paid for everything through the company card, you can still claim a deduction for every single day you've been away.

What else should you be aware of?

The travel deduction has several other conditions, some of the most important being

  • Your journey must last at least 24 hours
  • You cannot stay overnight in your own home
  • You cannot claim a deduction if it is unpaid work, for example if you are a volunteer
  • You must pay by the hour on the day of departure and return

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In TaxHelper, we help you find the deductions you're entitled to. You answer a few simple questions that take just 15 minutes to complete.

Then we report the deductions, and you get an extra DKK 2,704 back in tax. At the same time, you only pay if you get a tax saving.

Start here

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