While the prices of petrol and diesel are reaching new records, Jean Castex has just announced a 10% increase in the scale of mileage costs.
Bercy has delivered its verdict and Prime Minister Jean Castex has just announced it this Tuesday afternoon. the scale of mileage allowance will be increased “from this week” by 10%, in order to limit the impact of soaring fuel prices among “big riders”.
Concretely, this means that tax households declaring their professional expenses via the mileage scale system will benefit from a tax credit. On the other hand, if you choose a flat-rate deduction of 10% when completing your annual tax return (the most common case), the measure does not concern you.
=> Gasoline prices: Bruno Le Maire will not lower the VAT
=> Why prices are not likely to fall in the coming weeks
Mileage scale, how does it work?
In order to calculate the amount of your tax, the tax authorities subtract the weight of professional expenses of your income. In your annual declaration, a standard deduction of 10% is automatically applied if you are an employee.
But in some cases – especially for people who use their vehicle massively for their work – it is more interesting for you to declare at “actual costs” or to use mileage scales. It is a grid presenting types of vehicles (for example cars according to their fiscal horsepower) as well as amounts to be multiplied by the kilometers traveled for professional purposes.
Example
For example, if you travel 25,000 “professional” kilometers per year at the wheel of a car with 5hp taxable, your travel expenses have so far amounted to 25,000 x 0.368 (the rate decided by the State), i.e. €9,200.
By raising this rate by 10% (which thus goes to 0.405), the new amount to be declared is 10,125 euros. That is a difference of 925 euros.
=> The “fuel check” is gradually paid
=> Kazakhstan: how the price of LPG triggered the revolt
What effects?
The Ministry of the Economy reviews its grid each year in February. By raising the rates, the government is reducing the amounts to be declared, relieving households via a tax credit. The device is also restricted, because it only concerns tax households declaring via the system of scales, i.e. 2.5 million tax households, according to Le Parisien.
Who could benefit from an increase in the mileage scale? – @PierreKupferman pic.twitter.com/bJgOpSenkw
— BFMTV (@BFMTV) January 24, 2022
A restricted device
The Ministry of the Economy was working on new mechanisms to help households in the face of soaring fuel prices. According to the figures of Ministry of Ecological Transition, a liter of diesel was marketed at 1.65 euros last week on average. For unleaded 95, the bar reached 1.70 euro. Levels never reached before.
The Minister of the Economy, Bruno Le Maire, had repeatedly ruled out the hypothesis of a reduction in VAT on fuels. But he also indicated that the government “may consider specific measures for those who have no choice but to go to work with their car“, yesterday on France Info.
Photo: Fabrice Bolusset
Other fuel info:
How do I get the government fuel voucher?
Three tips to save on fuel prices
Will electric be the new diesel?
While the prices of petrol and diesel are reaching new records, Jean Castex has just announced a 10% increase in the scale of mileage costs.
Bercy has delivered its verdict and Prime Minister Jean Castex has just announced it this Tuesday afternoon. the scale of mileage allowance will be increased “from this week” by 10%, in order to limit the impact of soaring fuel prices among “big riders”.
Concretely, this means that tax households declaring their professional expenses via the mileage scale system will benefit from a tax credit. On the other hand, if you choose a flat-rate deduction of 10% when completing your annual tax return (the most common case), the measure does not concern you.
=> Gasoline prices: Bruno Le Maire will not lower the VAT
=> Why prices are not likely to fall in the coming weeks
Mileage scale, how does it work?
In order to calculate the amount of your tax, the tax authorities subtract the weight of professional expenses of your income. In your annual declaration, a standard deduction of 10% is automatically applied if you are an employee.
But in some cases – especially for people who use their vehicle massively for their work – it is more interesting for you to declare at “actual costs” or to use mileage scales. It is a grid presenting types of vehicles (for example cars according to their fiscal horsepower) as well as amounts to be multiplied by the kilometers traveled for professional purposes.
Example
For example, if you travel 25,000 “professional” kilometers per year at the wheel of a car with 5hp taxable, your travel expenses have so far amounted to 25,000 x 0.368 (the rate decided by the State), i.e. €9,200.
By raising this rate by 10% (which thus goes to 0.405), the new amount to be declared is 10,125 euros. That is a difference of 925 euros.
=> The “fuel check” is gradually paid
=> Kazakhstan: how the price of LPG triggered the revolt
What effects?
The Ministry of the Economy reviews its grid each year in February. By raising the rates, the government is reducing the amounts to be declared, relieving households via a tax credit. The device is also restricted, because it only concerns tax households declaring via the system of scales, i.e. 2.5 million tax households, according to Le Parisien.
Who could benefit from an increase in the mileage scale? – @PierreKupferman pic.twitter.com/bJgOpSenkw
— BFMTV (@BFMTV) January 24, 2022
A restricted device
The Ministry of the Economy was working on new mechanisms to help households in the face of soaring fuel prices. According to the figures of Ministry of Ecological Transition, a liter of diesel was marketed at 1.65 euros last week on average. For unleaded 95, the bar reached 1.70 euro. Levels never reached before.
The Minister of the Economy, Bruno Le Maire, had repeatedly ruled out the hypothesis of a reduction in VAT on fuels. But he also indicated that the government “may consider specific measures for those who have no choice but to go to work with their car“, yesterday on France Info.
Photo: Fabrice Bolusset
Other fuel info:
How do I get the government fuel voucher?
Three tips to save on fuel prices
Will electric be the new diesel?
