KILOMETER SCALE. The increase in the mileage allowance concerns no less than two million taxpayers. It could allow you to make significant savings on your 2023 tax return.
[Updated May 24, 2023 at 2:49 p.m.] In 2023, the mileage allowance scale was raised by 5.4%. An increase which can represent a saving of “more than 100 euros for a single person who earns 2,900 euros” according to the Ministry of Economy and Finance. To take advantage of this device, it is mandatory to use your car, motorcycle, or even your electric vehicle for professional purposes, and to declare your mileage costs for their actual amount, in other words, with the actual cost method (much more tedious, but which can turn out to be more advantageous).
However, be aware that you will have to justify all of your expenses (maintenance, fuel, tolls, etc.) with supporting documents. So, 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 (its ceiling is 13,522 euros for each member of the household in 2023), or declaring your professional expenses for their actual amount. Do not hesitate to make a simulation on the site www.impots.gouv.fr. In total, no less than two million taxpayers would be affected by this revaluation.
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% (ceiling equal to 13,522 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 5.4% 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.