Long-distance travel allowance: cover your business travel expenses
According to Les Echos, business travel expenditure in France will be worth 30 billion dollars by 2020.
As part of their professional duties, some employees are required to travel many miles from home. The employer reimburses the costs of these long journeys (transport, food, accommodation), and you can submit expense claims to your employer for reimbursement.
Find out all our advice on how to compensate your employees or receive your compensation in due form.
What is a travel allowance?
Travel allowance: definition
The long-distance allowance covers the additional food, transport and accommodation expenses incurred by employees travelling on business.
In this case, it will be possible for employees to receive these allowances when they are unable to return home because of their 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 journey),
- public transport cannot cover this distance in less than 1? hours (one-way journey).
If you do not meet this condition, your company may still declare that you are unable to reach home due to circumstances beyond your control (working hours, for example).
☝️ Please note: reimbursements are not exempt if you return home, even if you meet all the conditions.
Social security arrangements 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 allowances.
Léa Boluze , ©capital
In short, the allowances constitute reimbursement of business 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 exempt if it meets certain cumulative conditions:
- the exemption applies only to employees making the flat-rate deduction of 10% (no combination with the deduction for actual expenses is permitted),
- the allowances must correspond to professional expenses (not intended for personal expenses),
- they must correspond to special professional expenses (these allowances must not form part of the expenses already covered by the flat-rate deduction of 10%),
- they must be justified in sufficient detail to establish their veracity and amount,
- they must be used in accordance with their purpose.
Business travel: what allowances are available to employees?
Reimbursement based on actual expenses incurred
In order for your employer to reimburse your expenses, you must provide your employer with valid and accurate proof of the expenses incurred.
Actual expenses or business expenses (e.g. mission expenses) are all expenses incurred in the course of business.
Reimbursement on the basis of a fixed allowance
The fixed allowance is set by the State. It is mainly used to cover employees' meals.
- allowance for meals at the workplace: the flat-rate allowance paid to compensate for these additional expenses is exempt from contributions up to a limit of €6.70 as at 1 January 2021 .
- meal allowances outside restaurants: allowances are exempt from contributions up to a maximum of €9.40 on 1 January 2021.
- meal allowances in restaurants: allowances are exempt from contributions up to €19.10 on 1 January 2021 per meal,
- teleworking allowance: €10 per month for one day's teleworking per week, €20 per month for two days' teleworking per week, €30 per month for three days' teleworking 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 contributions 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's your advice? Let us know in the comments!
Article translated from French