Flat-rate reimbursement of home recharging costs
Flat-rate reimbursement terms
Flat-rate reimbursement involves allocating a fixed amount to employees to cover the cost of recharging their electric vehicles at home. This approach is advantageous, as it avoids the need to collect and check receipts for each recharge carried out. Instead, the employer sets a monthly or annual amount which is paid to employees.
The amount of the lump-sum reimbursement is generally based on an estimate of average recharging costs. For example, some companies offer a flat-rate reimbursement of of €50 to €100 per monthdepending on the number of kilometers traveled on business trips.
According to URSSAF, this reimbursement is exempt from social security contributions and income tax up to a certain ceiling. In 2024, the ceiling for the sustainable mobility package, including recharging costs, is set at to 700 euros per year.
To set up a lump-sum reimbursement, the employer must :
- assess the recharging needs of its employees,
- define a lump sum based on average recharging costs,
- clearly communicate the reimbursement policy to employees,
- include the reimbursement on employees' pay slips.
Advantages and disadvantages of flat-rate reimbursement
The flat-rate reimbursement of home recharging costs has both advantages and disadvantages that need to be taken into account.
| Aspect | Benefits | Disadvantages |
|---|---|---|
|
Administrative simplicity |
Significant reduction in administrative tasks |
Risk of discrepancy between lump sum and actual recharging costs |
|
Predictable costs |
Allows employers to easily forecast expenses |
Perceived as unfair by employees whose recharging costs are higher than the lump-sum amount |
|
Attractiveness for employees |
Employees benefit from stable financial support without having to keep and submit supporting documents |
Requires a precise initial assessment to establish the lump-sum amount |
|
Tax exemption |
Exemption from social security contributions and income tax |
Limited by legal ceilings |
|
Flexibility |
Adjustable to internal company policies and changes in energy costs |
Inaccurate valuations can lead to inappropriate amounts |
Installation of on-site charging stations
Obligations and incentives for employers
Legal obligations
The Loi d'Orientation des Mobilités (LOM), adopted in December 2019, requires companies to comply with several obligations concerning electric vehicle charging infrastructure (IRVE). From January 2025, all companies with parking lots with more than 10 spaces must install charging stations.
- New and renovated buildings: Companies with building permits filed after March 11, 2021 must equip at least 20% of parking spaces with charging stations by 2025. One charging station must be accessible to people with reduced mobility (PRM).
- Existing buildings: Companies with parking lots of more than 20 spaces must install one recharging point for every 20 spaces. Pre-equipment obligations also apply to major renovations, defined as work costing more than 25% of the building's value.
What's more, charging stations must be accessible and meet specific standards in terms of electrical sizing and installation. This includes the installation of sheaths, cable trays or conduits from the low-voltage main switchboard (TGBT).
Financial incentives
Several financial incentives are available to support companies in their efforts:
Visit ADVENIR program offers subsidies covering up to 50% of the cost of acquiring and installing charging stations, with specific ceilings depending on the type of beneficiary. For example:
- Companies with private parking : Subsidy of €1,660 per terminal for shared solutions.
- Fleets and employees : Grant of 50% of total cost, capped at €1,000 per recharging point.
Some local authorities offer regional aids. For example, the Grand Est region offers assistance covering 50% of the cost of charging stations for establishments open to the public, up to a maximum of €1,000 per charging point.
Costs and financing of terminal installation
The cost of installing charging stations can vary according to a number of factors, including the type of station, charging power, existing infrastructure and location. There are many aspects to consider.
Type and power of charging stations
AC charging stations with outputs from 3.7 kW to 22 kW generally cost between €700 and €2,500 per unit, including installation. Direct current (DC) charging stations with outputs ranging from 50 kW to 350 kW are much more expensive, with prices ranging from €15,000 to €50,000.
Infrastructure work
The cost of wiring and infrastructure work to install the bollards can vary considerably, depending on the distance between the low-voltage main switchboard (TGBT) and the bollard location. Costs can range from €500 to €5,000 per bollard, depending on the complexity of the work.
Note that if electrical upgrades are required, this can add a significant additional cost. Upgrading an existing electrical system to support charging stations can cost between €5,000 and €20,000, depending on the size and current state of the infrastructure.
Financing options
Companies can choose financing options such as leasing or long-term rental (LLD) to spread costs over several years. These solutions often include maintenance contracts and management tools. A bank loan can also be a solution for financing the installation of kiosks. The terms of the loan will depend on the company's financial situation and the nature of the project.
Also read → Guide to home charging station installation
Comparison of models: flat-rate reimbursement vs. installation of terminals
Scale and mileage allowances
When employees use their personal vehicles for business travel, they are entitled to mileage allowances. These allowances cover various costs associated with the use of the vehicle, including wear and tear, maintenance, tires, insurance and fuel. For electric vehicles, a 20% increase is applied to the standard scale of mileage allowances.
The 2024 mileage scale is structured according to the vehicle's tax rating (HP) and the number of kilometers traveled annually.
| Fiscal power (HP) | Up to 5,000 km | From 5,001 to 20,000 km | Over 20,000 km |
|---|---|---|---|
|
3 HP and less |
d x 0.529 |
(d x 0.316) + 1,065 |
d x 0.370 |
|
4 CV |
d x 0.606 |
(d x 0.340) + 1,330 |
d x 0.407 |
|
5 CV |
d x 0.636 |
(d x 0.357) + 1,395 |
d x 0.427 |
|
6 CV |
d x 0.665 |
(d x 0.374) + 1,457 |
d x 0.447 |
|
7 CV and more |
d x 0.697 |
(d x 0.394) + 1,515 |
d x 0.470 |
For electric vehicles, these rates are increased by 20%. For example, for a 6 HP vehicle with a business mileage of 8,800 km, the calculation would be as follows:
- Applicable scale: (8,800 x 0.374) + 1,457 = €4,743.20
- Electric vehicle surcharge: €4,743.20 x 1.20 = €5,691.84.
The advantages of lump-sum reimbursement are simplifying administrative management, predictability of costs, and ensuring stable financial support for employees. On the other hand, it may not cover actual costs for some employees, requiring regular adjustments. For its part, the installation of charging stations offers a sustainable and practical solution, reducing the need for reimbursement of home charging costs. However, its high initial cost requires subsidies and tax incentives to reduce costs.
Also read → Kilometric scale: what allowances?
Benefits in kind and tax advantages
The benefits in kind associated with electric and plug-in hybrid vehicles enable companies to provide non-monetary benefits to their employees, while benefiting from an advantageous tax framework:
- Electric vehicles benefit from a 50% allowance on the benefit in kind, up to a ceiling of €1,800 per year.
- When the employer finances the installation of a recharging station at the employee's home, this expense is excluded from the basis for social security contributions up to a limit of 50% of actual expenditure, with a ceiling of €1,000.
- If the terminal remains in the employee's home after the end of the contract, the costs are not included in social security contributions.
Businesses can benefit from a tax credit for expenses related to the installation of charging stations on their premises. This tax credit can cover up to 30% of installation costs.
Conclusion
Companies have to choose between flat-rate reimbursement of recharging costs and the installation of on-site charging stations to encourage the use of electric vehicles. While each option has its advantages, the subsidies and tax incentives available make these investments more affordable. Adopting a considered approach will therefore enable companies to effectively promote sustainable mobility, while meeting the needs of their employees and optimizing available resources.
If you would like to know more about the charging station tax credit at 2024please consult our article on the subject.
