Do you need a mileage log for a company car?
Short answer: yes, if you want to avoid full benefit taxation. The long answer explains why a mileage log pays off for company car drivers in Sweden.
You need a mileage log if you have a company car and do not want to be taxed at the full benefit value. Without a continuous and complete log, Skatteverket assumes that private use is unlimited and the benefit value is calculated accordingly. For many company car drivers that means SEK 30,000 to 60,000 in extra tax per year.
What benefit value means
Benefit value is the amount added to your income because you have access to a company car for private use. The amount is determined by the car’s new price, environmental properties and any accessories. Full benefit value applies if the car can be used privately without limitation. That is where a mileage log comes in.
Limited private use
Skatteverket allows a reduced benefit value if private use is limited, defined as a maximum of 1,000 kilometers per calendar year and at most ten occasions. To use that rule you must be able to show that the limitation holds, and the only accepted way is a continuous mileage log that lists every trip, both business and private.
Why employers often require a log
Many employers who provide a company car require the log on their own side too, because insufficient documentation can lead Skatteverket to treat the car as if it were an unclassified payment to the employee. That makes employer’s contributions a new cost for the company. It is not just you who takes the risk, the company shares it.
What happens without a log
Without a log there are two scenarios. The common one is that Skatteverket calculates full benefit value and you pay tax on it. The uncommon but possible one is that Skatteverket adjusts earlier years backward if they find inconsistencies in the history, which can lead to tax surcharges of up to 40 percent.
When the line becomes clear
A worked example. A company car with a benefit value of SEK 80,000 per year, marginal tax 50 percent, gives SEK 40,000 in extra tax. Reduced benefit value via limited private use can halve that. The difference, SEK 20,000 per year, is what a mileage log is worth. For a family with two company cars it is SEK 40,000.
What counts as a business trip
Trips to client, supplier, meeting and training are business. Trips between home and your regular workplace are commute, not business. More on the borderline in Private trip vs business trip.
“Is it enough if I only log the business trips?”
No. Skatteverket wants to see the full picture. You must log both business and private so the proportion can be assessed.
What MPH DriveLog does for company car drivers
DriveLog is built for exactly this problem. The car reports odometer, location and time. You classify trips against your rules. The log is kept for six years so it is available if Skatteverket asks. You skip the weekly Excel grind.
We have written specifically for company car drivers who drive Tesla:
- Mileage log for Tesla Model Y
- Mileage log for Tesla Model 3
- Mileage log for Tesla Model S
- Mileage log for Tesla Model X
For the rules themselves, see Mileage log according to the Swedish Tax Agency.