Employers should not pay their employees a prepaid travel allowance next year.

Due to the persistent uncertainty surrounding the corona virus, they have to opt for a compensation per actual kilometer driven, HR and salary service provider ADP advises Tuesday in an analysis of the terms of employment and compensation for the new year.

The rules for the travel allowance will change on 1 February.

From that date, employers may reimburse the travel expenses tax-free for a whole year to employees who come to the office for at least 128 days (60 percent of all working days in a year with full-time employment).

ADP recommends that you reimburse 19 cents per kilometer driven instead.

Due to all the uncertainty and the call to continue working from home anyway, it is very difficult to determine in advance whether those 128 days at the office will actually be achieved.

The Brexit and the new pension system are also causing changes to paychecks, the ADP writes in the analysis.

The pension agreement offers, among other things, an extension of the options for early retirement.

Employers may now give employees who choose this an amount for bridging without having to pay a tax of 52 percent.

Employees who are hiring after the New Year and who live in the UK are now referred to as 'third countries'.

To determine where an employee is subject to insurance, employers can make use of the convention for the prevention of double social security that the Netherlands has concluded with the UK.