How to calculate a mileage allowance in 2024? Scale and calculation model

The term " kilometre-based expense claim" refers to a document justifying a business expense incurred by an employee using his or her personal vehicle for business travel, most commonly his or her car.

With this proof, the employee obtains what are known as kilometer allowances to cover the expenses incurred.

To calculate mileage expenses, the employer must follow the 2024 mileage scale set by the tax authorities. Follow our GPS, we'll explain how in this article.

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How do mileage expense reports work?

Using a tax scale, the tax authorities define the amount of reimbursement for mileage allowances, actual business expenses, taking into account :

• vehicle maintenance and wear and tear,
• the cost of gasoline or fuel used,
• purchase of replacement tires,
• car insurance costs.

💡 Are home-work journeys taken into account?

Journeys between home and the workplace are not considered to be business travel, unless an exception is mentioned in a collective bargaining agreement or for on-call personnel, for example.

In the income tax return, a flat-rate deduction of 10% is automatically granted to employees to cover certain expenses such as those incurred by commuting.

Employees may opt to waive this deduction if it is less advantageous, and claim actual expenses instead, applying the current mileage scale.

The 2024 mileage scale: the reference for your reimbursements

The " barème kilométrique " is established each year by the tax authorities to define the conditions for reimbursing mileage expenses for each type of vehicle.

Our article dedicated to the 2024 kilometric scale explains everything in detail and presents the scales for cars, two-wheelers and scooters, and for bicycles.

Here's the 2024 scale table for cars:

How to calculate mileage expenses?

Example of mileage allowance calculation

Here's an example of how to calculate your mileage allowance, which you can use as a template for your expense claim.

Calculation elements to be taken into account (according to the scale) :

• John Smith, a salesman, uses his private car to make his sales rounds;
• John travels 500 kilometers during the year on his sales rounds;
• the administrative power of his car is 3 CV (horsepower).

The calculation is as follows

 Distance covered in km X 0.456 = 500 X 0.456 = €228

✅ Jean should therefore receive 228 euros in mileage allowances to reimburse his business travel expenses.

As John is an organized person, he has duly edited his expense reports month by month, minimizing the risk of errors.

Please note: you cannot reclaim VAT on mileage expenses. The sums paid to the employee by the company as mileage allowances are not subject to VAT. VAT is non-eligible and therefore non-deductible.

How can I obtain reimbursement on presentation of receipts?

Anyone is entitled to reimbursement of mileage expenses as long as :

• they (or their spouse) own the vehicle used for business travel,
• they keep and present their receipts to their employer.

Case no. 1: my company reimburses an amount in excess of the scale

If a company pays mileage allowances in excess of the official scale, URSSAF considers these amounts to be benefits in kind.

These benefits are subject to income tax and social security contributions.

Case no. 2: my company reimburses an amount lower than the scale

Certain exceptions confirm the rule: mileage allowances below the scale set by URSSAF may be reimbursed if the collective bargaining agreement so provides. Generally speaking, however, a minimum reimbursement threshold is set.

Is it possible to waive social security charges?

Travel expense reimbursements, and more generally all professional expenses, are exempt from social security charges.

☝️ Be careful, however, not to "disguise salaries" as expense claims: in the event of an audit, URSSAF will scrutinize expense claims very carefully. So be explicit in your expense claims.

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Manage your mileage claims with expense claim management software

As you can imagine, processing expense claims to convert them into mileage reimbursements can be a tedious business.

Using expense claim management software can simplify the task, keeping your accounts up to date and avoiding errors. It generally integrates the latest mileage scale and OCR technology, which recognizes the characters of scanned receipts (amount, date, type of expense) in the mobile application.

Here's a selection and some of their advantages:

• Cleemy automates the reimbursement of mileage expenses, integrating the scale, but also your personalized calculation rules, and even automatically calculates the cost of a journey based on GPS coordinates;
• the Expense Claim module in Eurécia HR software: this tool has the advantage of being integrated into a more comprehensive human resources management software package;
• Expensya: an intelligent statistics module to help you make the best decisions and control your organization's expenses;
• Izika: invites you to connect your electronic diary to translate it into mileage allowances, and save considerable time in managing your mileage expense reports;
• Kizeo Forms: allows you to create customized forms, such as an expense claim, with automatic calculation of VAT and VAT-inclusive amounts, and automatic e-mailing;
• N2F: estimates mileage costs on the basis of planned journeys and updates them in real time, and offers tools for adapting expense claim policies;
• Philéas Gestion: offers parameterization of reimbursement rules to control the budget, and generation of the necessary accounting entries.

What are your tips and tools for managing mileage expense reports?