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What is a benefit in kind for recharging electric vehicles?
A benefit in kind occurs when the employer provides its employees with goods or services free of charge or at a cost lower than their real value. This includes the provision of an electric vehicle or a charging point at the workplace. This benefit enables employees to reduce their out-of-pocket expenses, which is considered a form of indirect remuneration and is subject to social security contributions.
What is the legal framework for electric cars?
The benefit in kind for an electric vehicle can be assessed in two ways: on a flat-rate basis or based on actual expenditure.
| Méthode de calcul | Véhicule acheté | Véhicule loué ou en LOA | Commentaires |
|---|---|---|---|
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Flat-rate
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9 % of the purchase cost (6 % if vehicle > 5 years old)
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30 % of total annual cost (rental, maintenance, insurance)
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If the employer pays for the fuel, add 3 % for purchased vehicles or 10 % for leased vehicles. Allowance of 50 % capped at €1,800 per year for electric vehicles.
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Actual expenditure
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20 % of the purchase price + insurance + maintenance costs
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Total cost of rental + maintenance + insurance
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Apply the percentage of private mileage to the total. Electricity costs are not included in the benefit in kind for electric vehicles until the end of 2024.
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Good to know: there are specific regulations governing charging points!
The provision of a charging point at the workplace until 31 December 2024 is valued at €0. No benefit in kind should be declared for the use of this charging point for personal purposes. If the charging point is installed outside the workplace, the costs of purchase, installation and use borne by the employer must be included in the basis for social security contributions.
Importance for companies and employees
Adopting electric vehicles offers many financial and tax advantages for companies, while improving their brand image and environmental responsibility:
- Tax and financial benefits : Companies are exempt from VAT and registration tax, and also benefit from higher tax allowances for the depreciation of electric vehicles.
- Lower operating costs : The absence of fossil fuels reduces fuel and maintenance costs.
- Brand image and social responsibility : By integrating electric vehicles into their fleets, companies are demonstrating their commitment to the environment and improving their brand image.
- Grants and subsidies : Businesses benefit from a range of grants and subsidies (ecological bonus, conversion premium, regional aid).
Employees also enjoy the benefits in kind associated with the use of electric vehicles, making significant savings and actively participating in the ecological transition.
- Personal savings : Benefits in kind enable employees to make savings (fuel and maintenance costs). In addition, tax exemptions and allowances make these solutions financially more attractive.
- Comfort and convenience: Having a company electric vehicle means that you can recharge the vehicle at home or at work. This eliminates the need to make detours and means you can always set off with an electric car. battery full.
These benefits show that integrating electric vehicles and recharging infrastructure into the workplace is a winning strategy for both employers and employees, by aligning economic and ecological objectives in a harmonious way.
Also read → Reimbursement by the employer of the cost of recharging an electric vehicle
How do you calculate the benefit in kind for recharging electric vehicles?
Using a calculation simulator
To assess the benefit in kind of recharging electric vehicles, using a dedicated calculation simulator makes the process much easier. These tools allow you to quickly obtain an accurate estimate of the benefits in kind to be declared, based on the specific parameters of each situation.
Simulators simplify the calculation process by automating the complex stages. They take all the different variables into account:
- type of vehicle,
- age of the vehicle,
- method of acquisition (purchase or lease),
- recharge costs paid by the employer.
These tools are regularly updated to reflect the latest tax and social security regulations. Using a benefits in kind calculation simulator is simple and intuitive.
- Visit a platform offering a simulator, such as the AGS Conseil Paie or other similar tools available online.
- Enter the above information about the electric vehicle
- The simulator automatically calculates the benefit in kind based on the data provided.
Calculation methodology
Calculating the benefit in kind for recharging electric vehicles involves a number of precise steps. Here is a clear methodology to guide you through the process:
Step 1: Determine the cost of buying or leasing the vehicle
- Electric vehicle purchased : Take the purchase cost of the vehicle, including VAT. For example, for a new electric vehicle costing €30,000.
- Leased electric vehicle : Take the total annual rental cost, including maintenance and insurance. For example, €10,000 per year.
Step 2: Calculate annual depreciation
- Electric vehicle purchased : Annual depreciation of 20 % of the purchase cost if the vehicle is less than 5 years old, or 10 % if it is more than 5 years old.
- Example: €30,000 * 20 % = €6,000 per year for a vehicle less than 5 years old.
Step 3: Add insurance and maintenance costs
- Add the annual insurance and maintenance costs.
- Example: €1,000 insurance and €500 maintenance, for a total of €1,500.
Step 4: Calculate the percentage of private mileage
- Calculate the percentage of private mileage in relation to total mileage.
- Example: If an employee travels 15,000 km a year, of which 9,000 km is private, the percentage is 60 %.
Step 5: Apply the allowance of 50 % to the total
- Apply an allowance of 50 % to the total cost of electric vehicles, with a ceiling of €1,800 per year.
- Example: Total costs = €6,000 (depreciation) + €1,500 (insurance and maintenance) = €7,500
- Private percentage = €7,500 * 60 % = €4,500
- After an allowance of 50 %: €4,500 * 50 % = €2,250, capped at €1,800.
Step 6: Subtract any employee contributions
- If the employee makes a financial contribution, this sum is deducted from the benefit in kind calculated.
- Example: If the employee pays €300, the final benefit in kind is €1,800 - €300 = €1,500.
By following this methodology, you can calculate the benefits in kind for recharging electric vehicles in your company accurately and correctly. This guarantees tax transparency and cost optimisation for both employers and employees.
Also read → How do you manage your electric vehicle fleet?
The advantages and disadvantages of offering benefits in kind for electric cars
Adopting electric vehicles offers companies attractive opportunities in terms of tax breaks and a sustainable brand image. However, there are also financial and logistical challenges. The table below highlights the main benefits and obstacles to consider before taking the step to an electric fleet.
| Avantages pour l'entreprise | Inconvénients et défis |
|---|---|
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Tax deductions of up to €30,000 for depreciation of electric vehicles, compared with €20,300 for internal combustion vehicles
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Higher acquisition cost (up to 20 % more than a combustion car)
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Lower energy costs thanks to electricity consumption that costs less than conventional fuel
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Charging infrastructure still limited, especially in rural areas.
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Reduction incarbon footprintimproving Corporate Social Responsibility (CSR)
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Recharge time longer than filling a fuel tank
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Improving brand image and attracting talent sensitive to environmental issues
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Autonomy of electric vehicles is lower than that of internal combustion vehicles, despite constant improvements
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Compliance with environmental regulations: quotas for low-emission vehicles from 2024, with thresholds rising until 2030.
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Dependence on expensive raw materials (lithium), cobalt) used in batteries.
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Conclusion
The adoption of electric vehicles in businesses continues to grow worldwide. There are many benefits for businesses, including tax deductions and a reduced carbon footprint. However, they also have to overcome challenges such as high initial costs and the need for a new vehicle.recharging infrastructure limited. By balancing these benefits and challenges, companies can make informed decisions about how to effectively integrate electric vehicles into their fleets.
