Mobility budget use cases: Which mobility offers companies can realise with the new flat-rate taxation

Companies will soon be increasingly using mobility budgets instead of company cars and job tickets for commuting to work. This is because a new flat-rate tax is intended to simplify mobility budgets and enable flexible commuting by e-bike, e-scooter or car sharing. In future, employers will be able to tax mobility budgets up to an upper cost limit of €2,400 per year and employee at a flat rate of 25%. Which use cases companies can implement in practice: An overview.

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What the NAVIT platform can map from a company perspective

The NAVIT mobility budget platform can be used flexibly. That's why start-ups, consultancies, agencies, SMEs and large corporations throughout Germany are already working with us. The NAVIT platform offers a wide range of possible mobility options from which companies can flexibly and customisably select the options that suit their company location and the mobility needs of their employees.

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Overview of the use cases

1. Use case "Benefit for employees"
      → To strengthen the employer brand & attract and retain talent.
2. Use case "Alternative to the company car"
      → To incentivise sustainable mobility and reduce CO2 emissions.
3. Use case "Bundling of mobility offers"
      → To eliminate isolated solutions & significantly simplify admin and billing.

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"Benefit for employees" use case

There are many employee benefits, but mobility is a basic need. According to statistics such as the Circula Benefits Report, an allowance for mobility was the top desired benefit for employees in 2023. The mobility budget is therefore particularly worthwhile for companies that want to reorganise their benefits strategy. Implementing the NAVIT mobility budget as an employee benefit is technically possible in less than a month.

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The planned 25 per cent flat-rate taxation of mobility budgets will give employers additional opportunities to make salaries more attractive and promote sustainable mobility, allowing them to set themselves apart from other competitors in the market or incentivise a return to the office.

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Realise mobility benefits with a prepaid card

Virtual prepaid card topped up with mobility budget: Employees receive a virtual prepaid card to which the mobility budget is credited each month. Employees can use this card for public transport tickets, shared vehicles, refuelling or topping up by paying with the card in the mobility provider's app.

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"Alternative to the company car" use case

Hybrid working models and the increased focus on climate protection and sustainability (CSRD: CO2 reporting obligation from 2024) are making the company car increasingly unattractive as a traditional means of transport. In addition, maintaining company cars is expensive and resource-intensive.

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The mobility budget is a sustainable alternative: employees are incentivised to switch to shared mobility, which increases vehicle utilisation and reduces emissions. Companies can further improve their carbon footprint through integrated CO2 tracking and offsetting.

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Models for implementation as a company car alternative

Downsizing
By downsizing, employees can opt for a more efficient and less expensive vehicle and receive an additional mobility budget corresponding to the amount saved. This provides additional flexibility. This budget can be optimised for tax purposes with the 25% flat-rate allowance.

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Supplementary
The mobility budget as an additional offer to the company car. This creates incentives to switch to alternatives. The main aim of this model is to gather and try out new mobility experiences (especially e-mobility and shared mobility, such as car sharing).

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Use case "Bundling mobility services"

If companies already have mobility services for employees, NAVIT can integrate these on the platform, add further services and bundle them all in a one-stop shop.

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Companies such as Babbel and Hyundai, which already offer the Deutschlandticket or bicycle leasing and wanted to create additional offers such as shared mobility or a fuelling and charging card, have opted for NAVIT with the result that they no longer have to operate with various isolated solutions and providers.

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With NAVIT, companies only need one point of contact who brings together the mobility services on one digital platform. Existing interfaces to HR management, payroll and tax software - e.g. DATEV, SAP, Personio or Workday - can automate time-consuming processes such as tax optimisation (including the 25% flat rate), invoicing or updating user data and budgets.

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_{Disclaimer: NAVIT accepts no liability for the accuracy of the information. The information does not constitute tax advice and in no way replaces individual advice from a tax consultant.}

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