Types of reimbursement of expenses
Posted: Mon Jan 27, 2025 6:42 am
There are various costs that you can have reimbursed as expenses.
Reimbursement of expenses vs. passing-through funds
Have you already looked into reimbursement of expenses and come across the term " pass-through funds" ? Then you've probably asked yourself what the difference is. In principle, the same rules apply to both reimbursement of expenses and pass-through funds. The only difference is the point in time at which the employee receives the money.
Reimbursement of expenses : You initially pay in advance pakistan rcs data and only get the expenses reimbursed after the transaction.
Pass-through funds : You don't have to pay out of pocket up front, but receive the funds from your business before you spend them.
Recurring funds tend to be used for foreseeable expenses that occur at regular intervals, whereas expense reimbursements tend to be used for one-time expenses .
benefit in kind
If an employee uses a product or an object for both work and private purposes, he or she receives a benefit in kind from the company . This could be, for example, a company car or a smartphone that you can also use in your free time. The item in question is tax-free up to an amount of 50 euros per month.
Exception: Lump sum reimbursement of expenses
Companies can also offset the reimbursement of expenses with a flat rate . These flat rates can include, for example, travel, food and accommodation costs . However, you must bear in mind that the tax office sets the maximum rates. The annual maximum limit for accommodation and food is 1,000 euros. If you exceed this, an exact reimbursement of expenses makes more sense than a flat rate reimbursement.
Reimbursement of expenses vs. passing-through funds
Have you already looked into reimbursement of expenses and come across the term " pass-through funds" ? Then you've probably asked yourself what the difference is. In principle, the same rules apply to both reimbursement of expenses and pass-through funds. The only difference is the point in time at which the employee receives the money.
Reimbursement of expenses : You initially pay in advance pakistan rcs data and only get the expenses reimbursed after the transaction.
Pass-through funds : You don't have to pay out of pocket up front, but receive the funds from your business before you spend them.
Recurring funds tend to be used for foreseeable expenses that occur at regular intervals, whereas expense reimbursements tend to be used for one-time expenses .
benefit in kind
If an employee uses a product or an object for both work and private purposes, he or she receives a benefit in kind from the company . This could be, for example, a company car or a smartphone that you can also use in your free time. The item in question is tax-free up to an amount of 50 euros per month.
Exception: Lump sum reimbursement of expenses
Companies can also offset the reimbursement of expenses with a flat rate . These flat rates can include, for example, travel, food and accommodation costs . However, you must bear in mind that the tax office sets the maximum rates. The annual maximum limit for accommodation and food is 1,000 euros. If you exceed this, an exact reimbursement of expenses makes more sense than a flat rate reimbursement.