Please be aware that this article primarily pertains to Swedish rules and regulations, which may not necessarily apply or be valid in jurisdictions outside of Sweden.
Is driving part of your and your colleagues' jobs? Keeping a trip log provides a comprehensive overview of when and how you've been driving – and ensures peace of mind in case the Swedish Tax Agency (Skatteverket) comes knocking. But how does a trip log function in practical terms, and what should it include? Let us guide you!
What Is a Trip Log?
A trip log is a detailed account of all the journeys you, as an employee, have made with your car. Think of it as a logbook that outlines how and when the car was used, the distance covered, and who was behind the wheel. It also helps you keep track of whether the trip was for business or personal purposes.
When Is a Trip Log Needed?
Primarily, a trip log is required when employers offer company cars, i.e., cars used for both business and personal purposes. The log differentiates between the mileage driven for work and personal use. If you drive more than 3,000 Swedish miles per year for work, you may qualify for a reduced company car benefit – and consequently, a tax discount. Does your employer cover the fuel costs? In that case, a trip log is still necessary to account for work-related trips for which the employer should reimburse you. This applies whether you have a company car or not.
The Trip Log – Your Best Companion During a Tax Audit
Did you know that negligence with your trip log can lead to costly consequences for both the employer and the employee? The Swedish Tax Agency considers the trip log to be evidence that the car has been used correctly based on how the company car and fuel benefits have been managed. If a company undergoes an audit and approved documentation is missing, the employee risks being taxed for benefits, and the company may owe both taxes and social security contributions. In other words, maintaining order and accuracy in your trip log is a smart way to stay calm if you’re contacted by the Swedish Tax Agency.
What Details Should Be Included in the Trip Log?
According to the Swedish Tax Agency (in Swedish), the trip log should include the odometer reading at the beginning and end of the year, as well as the car's registration number. In addition, it should contain information about each trip, such as:
- Date and odometer reading at the start and end of the journey
- Number of driven kilometers
- Starting and ending addresses of the trip
- Purpose of the trip
- Visited places, companies, or contacts (not necessary for private trips)
- Notes about the driver, fueling, and more
Manual or Digital Trip Log?
Can you create your trip log with pen and paper? Absolutely, it's entirely accepted by the Swedish Tax Agency. However, there's a much smarter and more secure way. By using a digital solution – a system or an app – for the company's trip logs, you can avoid wasting time (and frustration) manually recording all details. By digitizing and automating the process, the documentation also becomes more reliable. This minimizes the risk of forgetting essential details and eliminates the hassle of misplaced paperwork. With our travel expense system, Flex HRM Travel, you gain complete control over your trip log and travel expenses, which are accessible on the web or your mobile device. Register your trips in the user-friendly interface, and all sums and reimbursements are calculated automatically. Additionally, you can let the app record your trip, saving you from keeping track of distance and potential stops along the way. In short, we've made it exceptionally easy for you, the business traveler who spends time on the road!
