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

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

With this proof, the employee obtains what is known as a mileage allowance to cover the costs incurred.

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

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How do mileage expense claims work?

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

• vehicle maintenance and wear and tear costs,
• the cost of the petrol or fuel used,
• the purchase of replacement tyres,
• the cost of insuring the car.

💡 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 agreement or for on-call staff, 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 in commuting to and from work.

Employees may choose to forego this deduction if it is less advantageous and claim their actual expenses, applying the current mileage scale.

The 2024 mileage scale: the benchmark for your reimbursements

The mileage scale is drawn up 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 mileage scale explains everything in detail and presents the scales for cars, two-wheelers and scooters, and for bicycles.

Here is the 2024 table for cars:

How are mileage expenses calculated?

Example of a mileage allowance calculation

Here is an example of how to calculate mileage allowances, which you can use as a model 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 travelled 500 kilometres during the year to make his rounds;
• the administrative power of his car is 3 CV (horsepower).

The calculation is as follows

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

✅ John should therefore receive €228 in mileage allowances as reimbursement for his business travel expenses.

As John is an organised person, he has duly printed out his expense claims month by month, minimising 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 expense receipts to their employer.

Case 1: my company reimburses an amount that exceeds 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 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 agreement so provides. Generally, however, a minimum reimbursement threshold is set.

Is it possible to waive social security contributions?

Reimbursements of travel expenses, 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 scrutinise expense claims very closely. So make sure you are explicit about what they are.

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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 usually incorporates the latest mileage scale and OCR technology, which recognises the characters on scanned receipts (amount, date, type of expense) in the mobile application.

Here is a selection and some of their advantages:

• Cleemy automates the reimbursement of mileage expenses, by integrating the scale, but also your personalised calculation rules, and even automatically calculates the cost of a journey based on GPS coordinates ;
• the Expense Claim module in the Eurécia HR software: the advantage of this tool is that it can be integrated with more comprehensive human resources management software;
• Expensya: a smart statistics module to help you make the best decisions and control your organisation's spending;
• Izika: allows you to connect your electronic diary to translate it into mileage allowances, and save a considerable amount of time managing your mileage expenses;
• Kizeo Forms: allows you to create customised forms, in particular an expense claim, with automatic calculation of VAT and the amount including VAT, 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: it allows you to set reimbursement rules to control the budget and generate the necessary accounting entries.

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