The mileage scale is increased by 10% this year. It applies to employees who opt for the deduction of actual costs in their tax return. Provided that it is more advantageous than the automatic deduction of 10%.
The 2021 tax filing campaign opens this Thursday. As every year, employees will benefit from an automatic flat-rate deduction of 10% applied to their income to take into account expenses related to their professional activity (transport, catering, etc.). For example, a single employee whose net remuneration amounted to 30,000 euros last year will obtain a deduction of 3,000 euros and will therefore be taxed on the basis of an income of 27,000 euros.
But for some taxpayers who believe they have spent more on their business expenses, it may be more advantageous to opt for the deduction of actual expenses rather than the 10% deduction. This particularly concerns large wheels. If the latter choose this option, their expenses relating to mileage costs must be calculated on the basis of a complex scale which takes into account the distance actually traveled during the year and the administrative power of the vehicle (3 hp or less, 4 hp , 5CV…).
In 2021, 4.3 million tax households opted for actual costs instead of the 10% deduction, of which 2.5 million are actually taxed. This option may be all the more interesting this year as the scale mileage costs has been increased by 10% in order to take into account the surge in fuel prices. In addition, the government plans to introduce automatic indexation of the scale from 2023 to better take into account “the evolution of the cost of ownership of a vehicle, in particular fuel costs”.
Note that there is a specific scale for two-wheelers and mopeds. As for electric vehicles, the amount of travel expenses calculated on the basis of these scales has been increased by 20% since 2021.
Deduction of actual costs or standard deduction?
In which case should the deduction of actual costs be opted for? To see more clearly, let’s take the example of our single employee declaring 30,000 euros in income. Suppose he travels 20 kilometers every day with a 5 HP vehicle to get to work, or 40 kilometers there and back. Over a year of 210 working days, he will have driven 8400 kilometres. By relying on the mileage scale and assuming that he has no other expenses incurred in the context of his activity, the amount of his professional expenses will amount to 4168 euros. In other words, his taxable income will be 25,832 euros (30,000-4168), instead of 27,000 euros with the automatic deduction of 10%. In the present case, it is therefore in his interest to opt for the deduction of actual costs.
Due to a calculation error, it may however happen that an employee opts in his tax return for the deduction of actual costs, mistakenly thinking that it is more advantageous than the flat-rate deduction of 10%. In this case, do not panic, the tax authorities will correct themselves and automatically apply the deduction that is most favorable to them.
Have set up a simulator dedicated to the calculation of mileage costs on the taxes.gouv.fr website to help employees estimate the amount of their actual expenses. To these mileage costs must be added any other expenses related to the professional activity (catering, purchase of documentation, etc.). In any case, remember to keep the supporting documents in case of control.
Finally, it should be noted that the distance between the place of work and the home taken into account in the context of the income declaration is limited to 40 kilometres. “However, the entire distance can be taken into account if you justify this distance from the particular circumstances (…) which may be linked to the job occupied or to particular family or social situations”, specifies the General Directorate of Finance. public.
New tax credit for the installation of a charging system
This year, a new tax credit is being introduced to help drivers of electric vehicles. This boost will be equivalent to a reimbursement by the State of 75% of the expenses of supplying and installing a charging system equipping a dwelling of which the taxpayer is the owner, tenant or occupant free of charge, regardless of the level of their income and whether this accommodation is assigned to the main or secondary residence.
This tax credit will apply for each charging system installed, up to a limit of 300 euros per system.