As a paid LUMC employee your commuting expenses are tax deductible. A conversion scheme is used to this purpose. If you apply for this scheme, you will receive a tax-free reimbursement of € 0.19 per travelled kilometre from and to the LUMC. At the same time, this same amount is deducted from your gross holiday pay and/or end-of-year bonus. As a result, you won’t have to pay any income tax over that amount, and thát is your tax advantage. This scheme is voluntary and is available to all appointed LUMC employees, irrespective of where you live.
Calculation example (fictional)
Let’s say your income tax is 50%. With your salary you receive €2,000 gross holiday pay, which will leave you with a net holiday pay of €1,000.
You apply for the conversion scheme and have a right to €1,000 as tax-free reimbursement of your commuting expenses. Then you ‘swap’ this tax-free reimbursement with your gross holiday pay. As a result, the taxable amount is reduced to €1,000. After the 50% tax deduction you net holiday pay is €1,500: €500 more than before.
So in short: gross holiday pay €2,000 > €1,000 tax-free + (€1,000 taxable -/- 50% tax) = € 1.000 tax-free + €500 > net holiday pay €1,500.
Who is allowed to participate in this commuting expenses scheme?You are allowed to participate in the commuting expenses scheme if:
- You are an employee of the LUMC and you receive a salary;
- You are an on-call worker with irregular wages;
- You are (long-term) unfit for work and your salary is paid by the LUMC.
- You are a trainee;
- You receive a study allowance (zakgeldvergoeding).
What else do you have to take into account?
- If during the year your commuting pattern changes, for instance because you have moved or you work a day less or more, in that case please inform us as soon as possible to ensure that you receive the correct reimbursement.
- If you also participate in another tax scheme, such as the bicycle scheme you perhaps already use a part of your holiday pay and/or end-of-year bonus. You cannot use this part for your commuting allowance.
- If your employment terminates within the next year and you expect to have to apply for an unemployment benefit, participation in this scheme may mean that your unemployment benefit is lower.
- If you can deduct your commuting expenses from your income tax, do not forget to include it in your tax return. In general this amount is higher than the maximum deductible amount. This cancels out your commuting allowance.
How to apply for the commuting expenses scheme?
- If you wish to participate in the commuting expenses scheme you have to complete and submit a form once-only. Failure to submit this form means you will not be able to receive the commuting allowance. During your appointment interview, the P&O advisor will explain where you can find this form.
- New employee? Please make sure to read the information on the page New employees.