2023 KILOMETER SCALE. The government is announcing a new boost to two million households taxed and declaring their mileage costs by increasing the mileage allowance by 5.4%. What does this mean to you?
[Updated March 23, 2023 at 9:46 a.m.] As prices continue to soar, the government wants to fight against this inflation by implementing an exceptional tax measure for French people who use their car or other personal vehicle for professional purposes . This boost concerns two million households taxed in France. Gabriel Attal, the Minister Delegate for Public Accounts announced on Wednesday March 22, 2023 on the set of the program "C à Vous" on France 5 that the scale of the mileage allowance would be increased "exceptionally" by 5.4 %.
This exceptional increase in the mileage allowance on 2022 income can mean a lot for households who declare their business travel expenses for their real amount on their tax return. For example, this "can represent more than 100 euros for a single person who earns 2,900 euros", Bercy told AFP. So if you use your personal vehicle to get to work or for your business trips, ask yourself the question whether or not you have to declare your real expenses. It's up to you to see which is more profitable between taking advantage of the 10% flat-rate deduction applied automatically when you declare your income, or declaring your professional expenses for their actual amount. How to calculate your mileage expenses? What are the rates for a car, two-wheeler or electric vehicle? What are the different costs covered? We answer all your questions.
The mileage allowance is calculated according to the distance traveled between your home and your place of work but also the fiscal power of your vehicle, a data to easily find on your car registration document. You can find the scale applicable to cars below with two examples?
This 2023 scale will also serve as a reference for setting the amount of flat-rate mileage allowances paid by employers to their employees, when the latter use their personal vehicle for business trips. These allowances are exempt from social contributions and income tax, without specific supporting documents, within the limit of the kilometer scale.
Choosing to declare your professional expenses for their actual amount, to the detriment of the automatic flat-rate deduction of 10% involves various administrative constraints.
The taxpayer concerned must identify all the expenses incurred in respect of his professional activity (meals, transport, clothing). Then, he is required to be able to justify all of these expenses, and that they are necessary for your professional activity, through invoices to be kept in a safe place. Also, the taxpayer must be able to present a complete list of all expenses incurred, to attach a detailed note to the tax return. To be eligible for actual costs, the total amount must exceed the flat rate deduction ceiling of 10% (12,828 euros).
Remember that these scales are calculated according to the power of the vehicle and the number of kilometers traveled. They take into account in particular the depreciation of the vehicle, repair and maintenance costs, tire costs, fuel consumption and insurance premiums. It is possible to add loan interest in the event of the purchase of a vehicle on credit, toll fees and parking fees. These travel expenses relate in particular to transport from home to the place of work and transport during working hours. You will find below the mileage scale applicable to cars for the year 2022, and the 2023 tax declaration:
Here is the 2023 kilometer scale corresponding to scooters and two red ones up to 50cm3:
Since 2021, the amount of travel expenses calculated from the scales above is increased by 20% if you own an electric car. This is also the case for taxpayers who drive an electric scooter or motorcycle. They benefit from a 20% increase on their travel expenses to be deducted from their income. Good news if you want to invest in an electric vehicle.
Remember that the savings from which potential beneficiaries will benefit do not only concern fuel expenses but all the costs incurred by the use of a vehicle for professional purposes:
If you want to calculate your mileage costs to find out if you are eligible for the 10% increase in the scale, take advantage of the simulator set up on the portal of the impots.gouv.fr site.
The Urssaf scales represent a "reference" provided by the tax administration. Thanks to these scales, it is possible to determine the amount of reimbursement of professional expenses, and to process expense reports. It also makes it possible to know the reimbursement ceilings not to be exceeded for an employer, so as to be exempt from social security contributions and that reimbursements are not perceived as benefits in kind.