Understanding mileage allowances
Kilometric allowances are of vital importance to the self-employed, as they compensate for expenses incurred during business travel. Indeed, it is possible for a professional to carry out his or her activity by traveling to customers or patients with his or her car registered on his or her personal assets. In such cases mileage allowances represent a means of reimbursing the costs inherent in these journeysIn this context, mileage allowances represent a means of reimbursing the costs inherent in such journeys, thus helping to preserve fairness and recognition of the work performed.
The expenses taken into account when calculating mileage allowances include various elements. Firstly, the fuel required to make the journey is taken into account. In our case, this means recharging the battery needed to run your electric car. Next, tolls, which are frequently unavoidable when using freeways or expressways to reach your destination, are also taken into account. In addition, parking costs, whether in public or private parking lots, are included in the mileage allowance. Finally, other expenses directly linked to business travel, such as car washing or rental costs, may also be taken into account.
It is essential to stress that the amount of mileage allowances is generally calculated on the basis of the number of kilometers actually driven for business purposes. It is therefore essential to keep a precise record of distances travelled, and to retain the necessary supporting documents, such as fuel invoices and toll receipts, so as to be able to justify the amounts.
In addition, since 2021, self-employed professionals using an electric car to carry out their work will benefit from a their mileage allowance by 20%.
Calculating mileage allowances
The calculation of mileage allowances is based on several criteria such as :
- the distance covered,
- the vehicle's tax rating,
- fuel costs.
To optimize your mileage allowances, it's important to calculate these different criteria correctly. To do this, we recommend the use of a business expense management software program, which will enable you to calculate your mileage allowances precisely according to these criteria. This way, you can be sure not to lose money on your travel expenses.
Table of mileage allowances in 2023
Here is the table of mileage allowances for electric cars for the year 2023.
| Tax rating of your vehicle | Less than 5,000 km | Between 5,001 km and 20,000 km | Over 20,000 km |
|---|---|---|---|
|
≤ 3 CV |
d × 0,529 |
(d × 0,316) + 1065 |
d × 0,370 |
|
4 CV |
d × 0,606 |
(d × 0,340) + 1330 |
d × 0,407 |
|
5 CV |
d × 0,636 |
(d × 0,357) + 1395 |
d × 0,427 |
|
6 CV |
d × 0,665 |
(d × 0,374) + 1457 |
d × 0,447 |
|
≤ 7 CV |
d × 0,697 |
(d × 0,394) + 1515 |
d × 0,470 |
Example of mileage allowance calculation for the Tesla Model 3
A Tesla Model 3 is an electric sedan and has a tax rating of 7 HP. Let's imagine that in the course of a year you've driven 17,000 kilometers. In this case, you would calculate your mileage allowance as follows:
(17 000 x 0,394) + 1515 = 8 213 €
What's more, as we said earlier, driving electric cars electric carsyou benefit from a 20% increase, i.e. a total mileage allowance of €9,855.60.
Read also : Top 5 electric leased cars for professionals
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Strategies for optimizing mileage allowances for professionals using electric cars
Kilometric allowances are a key factor in maximizing the economic benefits of commuting by electric vehicle. By adopting the right strategy, self-employed professionals can maximize these benefits, reduce costs and obtain significant tax advantages.
Choosing the right tax regime and deduction method
Choosing the right tax regime and deduction method is crucial for freelancing with electric vehicles. Different tax options can be explored to maximize the benefits associated with mileage allowances.
First of all, it's essential to understand the different tax regimes available to the self-employed. Among these, the actual tax regime and the micro BNC system are the most commonly used. Each regime has its own advantages and disadvantages, and needs to be carefully analyzed to determine which is best suited to the specific circumstances of your business.
With regard to the method of deducting the mileage allowance, it is important to bear in mind the legal regulations in force. Liberal professionals can choose between a one-off deduction for mileage, or an actual deduction for travel expenses.. A flat-rate mileage deduction is generally easier to implement, as it allows a fixed amount to be deducted for each kilometer traveled. However, the actual deduction of travel expenses may be more advantageous for certain professionals, particularly those who frequently travel long distances or incur significant expenses related to the use of electric vehicles.
Keep accurate records of business travel
Documentation is one of the strategies you can use to optimize your mileage allowance for electric vehicles. The logbook is the key document for justifying distances traveled for business purposes in order to take full advantage of the tax benefits linked to the mileage allowance.
Keeping a detailed logbook accurately records all business trips made with your electric vehicle. It is advisable to record information such as date, reason for journey, departure and arrival mileage and the route taken. A strict, up-to-date register enables you to justify business mileage in the event of a tax audit.
It's also important to note that keeping accurate records of your daily business trips can help optimize mileage allowances by identifying the most frequent and longest journeys. This information can be used to assess the savings made by using electric vehicles compared with conventional vehicles.
Today, there are many digital tools and mobile applications that make it easier to manage and record your business trips. These solutions can automatically track distances traveled, generate detailed reports and even synchronize data with other accounting software. Using these tools can greatly simplify the recording process and ensure more accurate collection of information on all your journeys during the course of your business.
Use trip tracking and management tools
As part of a strategy to optimize mileage allowances for self-employed drivers of electric cars electric carthe use of trip tracking and management tools plays an important role. These tools offer an effective solution for collect and analyze business travel dataThese tools offer an effective solution for tracking and analyzing business travel data, helping to maximize the tax benefits associated with mileage allowances.
The use of trip-tracking tools is designed to automatically record the distance traveled and the route taken. They often use GPS technology to accurately track the routes taken by electric cars. Thanks to these tools, self-employed professionals can easily obtain accurate and reliable data on their business routes, making it much easier to prove the kilometers traveled and boosting their credibility during tax audits.
In addition to trip tracking, travel management tools offer additional functionalities for optimizing business travel. They can help you plan the most efficient routes, taking into account traffictravel time and points of interest. These tools can also help estimate travel-related costs, such as energy consumption and recharging costs, enabling better management of the costs associated with using electric cars.
In addition, some travel tracking and management tools offer the option of generating detailed reports on business travel. These reports can include information such as distance traveled, time traveled, locations reached, costs involved, etc. These reports are extremely useful for managing accounting, declaring mileage allowances and evaluating the overall efficiency of all the daily trips you make.
Optimize routes to reduce distances travelled
By planning your commute efficiently, the number of kilometers driven can be reduced, saving time and energy and increasing the tax benefits associated with mileage allowances.
Route optimization can be achieved through the use oftechnological specifically designed for this purpose. These tools, often based on GPS technology, help to evaluate different route options, taking into account factors such as distance, estimated travel time, real-time traffic and points of interest. By choosing the shortest or most efficient routes, you as a self-employed professional can reduce the distance you travel and maximize your tax benefits.
It is also necessary to take peak times and periods of traffic congestion into account when planning routes. Avoiding peak times not only saves travel time, it also saves energy by avoiding frequent stops and restarts. By using route planners that integrate this real-time information, freelancers can optimize their routes to avoid traffic jams and delays, and save money on distance travelled.
Tax benefits of electric cars
The electric cars benefit from special tax advantages. Liberal professionals who use electric cars for their own activities can deduct the cost of using their vehicles from their taxes. What's more, electric cars are exempt from company vehicle tax, which represents a significant saving for your company.
To maximize the tax benefits of electric cars, it's important to consider several key aspects. Firstly, it's essential to know the specific tax regulations relating to electric vehicles. This includes knowledge of available tax credits, vehicle tax exemptions and tax deductions associated with the purchase and use of electric cars.
Under current law, you can write off your investment in an electric vehicle over several years, considerably reducing your tax burden. By understanding these regulations, owners of electric cars can make the most of the tax advantages available to them.
Another strategy for maximizing tax benefits is to explore the tax incentives offered by local and regional governments. Some regions offer purchase subsidiesSome regions offer purchase subsidies, tax breaks or specific advantages to companies using electric cars in their fleets. By keeping abreast of current government programs, it is possible to take advantage of these additional tax benefits and maximize the financial benefits associated with electric cars.
See also: Liberal professions: tax exemption for your electric car in 2023
