Professional fees. How to calculate the in-kind performance of a vehicle?

When the employer makes a vehicle permanently available to an employee, whether he owns or rents it, a benefit in kind must be quantified and liable for contributions when private use is made of it. This permanent delivery of a vehicle therefore allows the employee to use a professional vehicle on a private basis (de facto outside working hours) (eg Saturday and Sunday, public holidays or during his leave).

Here’s how to calculate this benefit (info taken from Absolute).

The two assessment methods for the contribution basis

There are two separate assessment methods. The benefit in kind can be assessed either on the basis of the expenses actually incurred or on the basis of an annual lump sum.

The evaluation method is not necessarily the same for all employees in the same company.

The permanent employment must nevertheless be used if the expenses incurred cannot be detailed or by an actual assessment without being able to prove the private mileage.

Electric vehicle

For vehicles made available between 1 January 2020 and 31 December 2022 and operating solely on the basis of electrical energy (non-hybrid), the costs taken into account in calculating the benefit in kind may not be taken into account. taking into account the cost of electricity incurred per the employer for recharging the vehicle. In addition, they are valued after applying a 50% reduction within the limit of 1,800 euros per year.

Valuation on the basis of actual expenses incurred

For a purchased vehicle

Actual expenses include: depreciation of the vehicle including tax, over 5 years at 20% per annum; insurance; maintenance costs including VAT (for example: service, tire change, oil change, wipers, etc.)

If the vehicle is more than 5 years old, the percentage of depreciation to be withheld is 10%.

For a rented or leased vehicle with the option to purchase

The actual expenses include the total annual cost of the rent, to which must be added the insurance and maintenance costs including VAT.

The value of the benefit in kind is obtained by applying to the total thus obtained the existing ratio between the mileage driven by the employee for own use and the total number of kilometers and by adding, where applicable, the fuel costs used for the journey. used and paid for by the employer.

Please note: When the employer can not prove the mileage privately, Urssaf must adjust it on the basis of a fixed rate.

Valuation based on a fixed price

For a purchased vehicle

The benefit is equal to 9% of the purchase price including tax (6% if the vehicle is over 5 years old).

If the employer pays for the fuel, this additional benefit is retained either for its actual amount or by an increase of approx. old).

For a rented or leased vehicle with the option to purchase

When the employee pays his fuel costs, the assessment from private use corresponds to 30% of the total annual costs including tax including rent, maintenance and insurance.

If the employer pays for the fuel, the assessment is made:

– at 30% of the total annual rental costs (rent, maintenance, insurance) plus actual costs (on invoices) of fuel used for personal purposes,

Or 40% of the total annual cost of rent (rent, maintenance, insurance and the total cost of fuel used for professional and personal purposes).

The valuation thus obtained may not exceed the calculation assessed according to the rule applicable in the case of purchased vehicle.

In addition, this is an annual lump sum, which may have to be paid in proportion to the number of months in which the vehicle has been made available to the employee, especially when this happens during the year.

Distribution of private and professional kilometers

The employer can use the declarative system to determine the private and professional mileage, but it has only a reduced evidential value: it is only the beginning of proof …

The administration estimates that the employer can detect the mileage driven privately with the difference with the commercially driven mileage of the vehicle’s total mileage.

In either case, the logbooks, daily activities, visits or customer appointments can provide sufficient evidence of mileage for professional purposes.

Point of vigilance: the assessment of the benefit in kind of a vehicle must be carried out in a precise manner. In the case of an Urssaf inspection, an incorrect assessment will be conditional on a regulation of contributions, which over three years could have significant economic significance.

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