Long-distance travel allowance: cover your business travel expenses
According to LesEchos, business travel expenditure in France will be worth $30 billion by 2020.
As part of their professional missions, some employees are required to travel many miles from home. Expenses incurred during these long trips (transport, food, accommodation) are reimbursed by the employer. You can submit your claims for reimbursement to your employer via expense reports.
Find out more about our tips for reimbursing your employees , or getting your reimbursement in due form.
What is a travel allowance?
Travel allowance: definition
A long-distance travel allowance covers additional expenses for food, transport and accommodation for employees on business trips.
In this case, it will be possible for the employee to receive these allowances when he or she is unable to return home due to working conditions.
However, two conditions must be met
- the distance between your place of residence and your place of work is greater than or equal to 50 km (one-way trip),
- public transport cannot cover this distance in less than 1h30 (one-way trip).
If this does not apply to you, your company may still declare that you are unable to reach home due to circumstances beyond your control (e.g. working hours).
☝️ Please note: reimbursements are not exempt if you return home, even if you meet all the conditions.
Social security system for long-distance travel allowances
As an employer, if you wish to benefit from the exemption, you must provide proof of the expenses incurred by your employees if, and only if, the reimbursement of long-distance travel expenses exceeds these exemption limits.
Long-distance travel allowances are exempt from social security contributions up to the amount of the lump-sum allowance.
Léa Boluze , ©capital
In short, these allowances constitute reimbursement of professional expenses, when they are paid up to the ceiling set by URSSAF. Conversely, the portion in excess of the ceiling will be subject to social security charges and income tax.
Your compensation is tax-exempt if it meets certain cumulative conditions:
- the exemption applies only to employees making use of the 10% flat-rate deduction (no cumulation with the deduction for actual expenses is authorized),
- allowances must correspond to business expenses (not personal expenses),
- they must correspond to special professional expenses (these allowances must not form part of the expenses already covered by the flat-rate 10% deduction),
- they must be justified in sufficient detail to establish their veracity and amount,
- they must be used for their intended purpose.
Business travel: what allowances are available to employees?
Reimbursement based on actual expenses incurred
In order for your employer to reimburse you for your expenses, you must present your employer with valid, accurate proof of the expenses incurred.
Actual or professional expenses (e.g. mission expenses) represent all expenses incurred in the course of business.
Reimbursement based on a flat-rate allowance
The lump-sum allowance is set by the government. It is mainly used to cover employees' meals.
- allowance for meals at the workplace: the lump-sum allowance paid to compensate for these additional expenses is exempt from contributions up to a limit of €6.70 on January 1, 2021 .
- non-restaurant meal allowances: up to €9.40 January 1, 2021.
- restaurant meal allowances: allowances are exempt from contributions up to €19.10 on January 1, 2021 per meal,
- teleworking allowance: €10 per month for one day of teleworking per week, €20 per month for two days of teleworking per week, €30 per month for three days per week.
The 2021 rates
Here are the scales on which you can base your business expense calculations and mileage claims for 2021.
Kilometric scale applicable to motorists in 2021
Different amounts depending on your location
Depending on your location, reimbursements of meal and accommodation expenses for employees are excluded from the contribution base, with no limit on the amount, as is the case abroad and in the French overseas departments.
Scale for long-distance travel in mainland France for 2021
Rates for long-distance travel in the French Overseas Departments and Territories for 2021
These amounts are reduced :
- by 15% from the first day of the 4th month for a trip of more than 3 months and less than 2 years,
- by 30% from the first day of the 25th month for a trip of more than 24 months and less than 4 years.
What are your tips? Let us know in the comments!
Article translated from French