Kilometric reimbursement: calculate mileage allowances

As an employee, you can benefit from reimbursement of your mileage expenses, depending on the case may be. How can you calculate your mileage allowances simply in order to have a good visibility on your outings and your cash receipts related to your professional activity? Update on the kilometre reimbursement of your expenses and the current schedule.

Item Plan

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  • Work and Mileage Expenses
  • The Mileage Allowance and Schedule System
  • How to Calculate Kilometric Expenses

Work and mileage costs

The kilometre fee schedule is applicable according to the tax power (number of horsepower of the vehicle — CV). Being an employee or even an employer, the kilometre expenses are defer either in actual expensesor expenses in order to avoid having tax on vehicles of company.

Each year, the tax authority publishes the kilometre scale that can be used for the current year’s income tax return. In general, this publication is done in February and remains valid for the return of your income to be made in April of the same year.

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The kilometre scale is used to estimate the cost of using a vehicle to a taxpayer. These mileage charges are considered as a lump-sum basis in the annual scale.

Mileage charges may include:

  • Depreciation of the vehicle;
  • Vehicle insurance;
  • Maintenance and repairs of the vehicle;
  • fuel required for the vehicle, etc.

The kilometre allowance and scale system

All mileage charges related to the use of the vehicle is included in the kilometre scale and will be used to calculate your allowances. Because work often involves travel, it is often fair and necessary for a company to offer to cover all or part of the kilometre costs, depending on the vehicle available to the employee.

These fees do not take into account highway toll expenses or parking charges. However, a deduction is possible subject to the presentation of evidence.

Good to know : loan interest related to the purchase of a personal vehicle can be deducted inproportion to professional use .

Reimbursement of mileage allowance expenses can quickly change the life of an employee over a month’s work.

How to calculate your fees mileage

For an employee, the scale and kilometre allowance system is beneficial. The employee receives financial compensation (a lump sum allowance ) for travel expenses incurred on behalf of the company.

For an employer, the scale system is also advantageous, since it allows them to incorporate these costs into their expenses. He then benefits from an exemption from social security contributions, within the limits of the tax scale of kilometre allowances. The employer must absolutely justify the use of these allowances for professional purposes.

The kilometre scale is based on two factors:

  • The number of kilometres travelled in a professional capacity;
  • The tax power of the vehicle.

The tax administration scale will classify vehicles according to their tax power in CV. The distance is multiplied by an amount in euros , depending on whether the vehicle travelled up to 5,000 km, from 5,001 km to 20,000 km, or beyond 20,000 km.

Note : a motorcycle, moped or scooter may also be affected by the kilometre allowance. When filing your income tax return, be careful to take the right scale.

Example : for a 5 HP vehicle that travelled 10,000 km (2020 scale), the formula will be:

( d x 0,308) 1,200

The calculation of the kilometre allowance will then be returned to:

( 10,000 x 0,308) 1,200 = 4,280euros.

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