Note
This text does not replace legal advice from a tax advisor. It serves solely as supportive information. For binding information, please contact your tax advisor or the relevant tax office.
At a glance
Circula automatically takes the Midnight Rule into account for trips without overnight stays.
Deductions can be manually reversed.
This article provides all further details on the Midnight Rule.
Background: The Midnight Rule
The Midnight Rule applies when a trip spans two calendar days but does not include an overnight stay. In such cases, the trip is treated as a one-day trip.
For trips lasting three or more calendar days, the Midnight Rule does not apply.
Regardless of the trip duration: an overnight allowance may only be paid if an actual overnight stay occurred.
Our Solution: Automatic Calculation of Allowances
Circula automatically detects when a trip falls under the Midnight Rule and adjusts the calculation of allowances accordingly: this applies when the trip spans at least two calendar days and ends before 10:00 AM.
For 2-day trips:
Payment of per-diems for half a day.
No payment of overnight allowance.
Example:
Trip from Monday 2:00 PM to Tuesday 2:00 AM, e.g., attending an event with a late return
→ Payment of half-day per-diems, no overnight allowance
For trips of 3 or more days:
Per-diems are paid for each calendar day (Midnight Rule does not apply)
No overnight allowance for the last night
Example:
Trip from Monday 10:00 PM to Wednesday 1:30 AM
→ Two half-days + one full-day per-diems
→ Overnight allowance only for Monday to Tuesday, not for Tuesday to Wednesday
Manually Adjusting Deductions
If the automatic deductions are not desired, a toggle is available within the trip to reverse the deductions.
Trip example for the Midnight Rule
Note
The toggle is visible and editable for both users and accountants.
Do you still have questions?
💬 Chat Support
📞 +49 30 588 491 01
✉️ support@circula.com