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The mileage allowance in question

2022-04-08T08:34:07.126Z


NEWS - Is the 10% increase in the scale of this scheme likely to upset the decisions of park managers?


Over the past thirty years, the company vehicle, or service vehicle, has established itself as the second cost item, after salaries, in the majority of service companies.

The employer, by providing the vehicle, controlled the employee's remuneration by offsetting the salary increase and his social charges, controlled the expenses related to professional use such as the fuel charge, always subject to discussion before through expense reports , and ensured the safety of the employee for whom he is responsible during his professional activity, by providing a new and regularly maintained car.

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But sometimes things change quite abruptly.

Today, the mobility orientation law (the LOM law) has the function of making you “get out of automobile dependence”.

This is how its authors conceived it and promulgated it in December 2019. A timetable for the "transformation" has been put in place and will force companies to remove diesel vehicles from their fleet, then gasoline, then to convert to the plug-in hybrid car before it is also banned in favor of 100% electric cars by 2035.

Added to these constraints is the meteoric emergence of telework that companies have been able to test since the appearance of the coronavirus, which has distanced salespeople from physical prospecting.

The first consequence was the impressive drop in the average mileage of company cars.

From 42 months and 140,000 kilometers which were the norm, long-term contracts for company vehicles have dropped to an average of 30 months for 70,000 kilometres, or 28,000 km/year, most often in petrol.

Companies released from a charge

However, the tax ceiling for the reimbursement of mileage allowances (IK) is set at 30,000 kilometers/year and 7 CV tax.

This fuels a fire of questions: why should the entrepreneur complicate his life with restrictive regulations?

Why should he put up with a massive increase in fuel costs with hybrids over the diesels of before?

Why should he finance electric vehicles with expensive charging stations?

Why pay rent for cars that are driven less and are often immobilized?

Why manage the mountain of employee minutes?

Why do you have to create a mobility plan?

IK have the advantage of adapting to circumstances.

You only pay for what you have consumed.

You delegate to the employee the choice of his energy for his car;

you only reimburse the actual costs specified in the ninth paragraph of article 83-3 of the general tax code or those provided for in IK in the scale of the Official Journal of February 29, 2020. You release the company from a charge that has become much less productive, you do not immobilize rents or loan repayments.

You considerably reduce your financial costs and you no longer have to calculate the slightest automobile benefit in kind.

It's tempting.

In the minus column, you will have to agree to no longer control the quality of the company's vehicle fleet and to have to deal with the employee on a case-by-case basis again for their vehicle.

Companies will also have to ensure the ability of the vehicle chosen by the employee to carry out his professional mission.

Employees may also be tempted to extend the distances between the company and its customers.

But the idea of ​​the IK is gaining ground.

The constraint, the energy ukases on the renewal of the parks, the political discourse on the electric car, the explosion of fuel expenditure observed in 2021 despite the fall in professional kilometers have ended up challenging many business leaders.

Developments which are also of a nature to question the entire sector.

* Louis Daubin is the director of Kilometers Enterprises magazine.

Source: lefigaro

All news articles on 2022-04-08

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