The corona measure that employers can continue to provide their employees a tax-free allowance for fixed travel expenses will be extended until July 1, 2021 (even if there is no actual travelling). This regulation was initially valid until April 1 of this year.
Many employers still pay their employees compensation for fixed travel expenses on a tax-free basis, even when those employees mainly work from home. A condition for giving the tax free compensation is that the employees also received this before 13 March 2020.
The cabinet is extending this measure because there are still employees incurring costs associated with traveling for work e.g. employees who have fixed costs for their own car or private lease car that they previously used for commuting or to employees who have chosen to extend their public transport subscription. Some employers also use the travel allowance as a kind of home work allowance.
It is quite possible that working from home will be normal in the future. That is why the government is investigating post-crisis tax measures on how employers can reimburse home work costs in conjunction with existing travel allowances.
Employers can also reimburse home work costs through the work-related costs scheme. This scheme was eased for the whole of 2021 (higher “free space” amount), just like last year.