Company car or privately as a freelancer

Whether it is better for you to keep a car for business or personal use as a freelancer depends on several factors, including your business and personal needs, financial situation and tax considerations. Here are some considerations:

Business car:

1. Deductibility of costs: If you use a car for business purposes, you can deduct certain costs from your profit, such as fuel, maintenance, insurance and depreciation. Please note that the degree of deductibility depends on the business use.

2. Additional tax: Additional tax may apply for a business car that you also use privately. This means that a percentage of the car's list value is added to your income, which can affect the income tax you pay.

3. Investment deduction: When purchasing a new business car, you may be able to benefit from investment deductions, such as the small-scale investment deduction (KIA) and the environmental investment deduction (MIA).

Private car:

1. No additional tax: If you keep the car privately, you do not have to include any additional tax in your income. This can be advantageous if you mainly use the car for private purposes.

2. Mileage reimbursement: If you also use the car for business, you can charge your company a kilometer allowance. However, this amount is lower than the actual costs that you could deduct for a business car.

3. Less administrative burden: Keeping administration for a business car can be complex. With a private car you avoid these administrative burdens.

Would you like to calculate what is most beneficial for you? Do you want to drive a company car (including additional tax for private use) or a private car for business purposes? Then check this link from the Chamber of Commerce.

Car lease

The choice between business leasing and private leasing, as well as between operational lease and financial lease, depends on various factors. Here are some considerations to keep in mind:

1. Business leasing vs. Private leasing:

• Business leasing:

• Advantages:

• Business leasing can offer tax benefits, such as the option to deduct lease costs from profit.

• You may benefit from investment deductions and depreciation options.

• Cons:

• Additional tax may apply if you also use the car privately.

• Stricter rules regarding business use.

• Private leasing:

• Advantages:

• No additional tax, as the car is considered private property.

• Simpler administration, because it mainly concerns private use.

• Cons:

• Fewer tax benefits compared to business leasing.

2. Operational lease vs. Financial lease:

• Operational lease:

• Advantages:

• No worries about maintenance, insurance and other operational costs; these are usually covered by the leasing company.

• Easily upgrade to newer models.

• Cons:

• Generally more expensive than financial lease in the long term.

• No ownership of the car at the end of the lease contract.

• Financial lease:

• Advantages:

• You are ultimately the owner of the car after the lease contract ends.

• Possibly lower monthly costs compared to operational lease.

• Cons:

• You are responsible for maintenance, insurance and other operational costs.

• The car is on the balance sheet of your company.

When making your choice, it is important to consider both the financial aspects and your specific needs and usage patterns. Calling in a financial advisor or a specialized car leasing advisor can help determine the most suitable option for your situation.