What is a travel deduction?
Travel deductions are one of the most overlooked deductions. Epinion has found that almost 1 million Danes miss out on this deduction every year. This is the equivalent of up to 11 billion DKK per year in travel deductions that are not reported to Skat.
The same study has found that 42% of Danes travel for work every year. Even if you only travel for the duration of a single day, you may be eligible to receive a deduction of up to 728 DKK per day (2019). Even if the meals and accommodation are covered by the employer, you may still be able to get some money reimbursed. We will revisit this point further down in the article.
In this article, we will cover:- What a travel deduction is
- Instances where your employer is already covering your expenses
- Other conditions you will need to be aware of
- Whether you are eligible to receive any deductions
What is a travel deduction?
A travel deduction is a deduction you may be eligible for if you have been out traveling for work. It is intended to cover the extra expenses you may have in connection with your travels.
It can cover everything, ranging from you having paid for your accommodation or for your meals yourself, or if you paid for your own train tickets, flight or even a water bottle.
What if I get an 'allowance' or a 'diet' by my employer?
Some work places choose to pay for so-called "tax-free travel allowances" or "diets". That means that your employer pay a sum of money directly to your bank account based on an estimate of your expenses.
In such cases, it is crucial to check whether you have been properly compensated for your expenses by your employer. If they are paying less than the rates presented by Skat, you are still eligible for a deduction.
There may also be instances in which the employer has only compensated for you for your meals and hotel (accommodation), but not for so-called "small necessities". Thus, you will still be eligible for a deduction for these.
If you have been so organized as to save your receipts, you may also be eligible for a deduction if you ended up having more expenses than your employer expected you to.
See how you can check whether you have money to be made towards the bottom of the article.
