In some areas of business, you may spend a lot of time on the road to complete specific assignments and these trips come at a cost. Indeed, the bill can quickly become substantial and some help would be welcome. But don't worry, it is possible to deduct business expenses on your tax return. However, in order to declare your expenses correctly and benefit from an adapted compensation, you will need to know the 2023 mileage scale.
It is already possible to benefit from a flat-rate deduction of 10% but if this is not enough, it is possible to declare your actual expenses on your 2023 tax return. But how does the 2023 mileage scale work? Can you benefit from it and up to what amount? This is what we will see in this article.
Understanding how actual expenses work for your 2023 mileage schedule
As you may have already understood, the allowances work on the basis of the distance you travel to your place of work, as well as the fiscal power of the vehicle used. The 2023 mileage scale is set up to help you use a clear reference showing the amount available to benefit from the lump sum allowances paid by employers. There will be no social security contributions or taxes on these allowances, so it is in your best interest to take advantage of them if you can.
Of course, you already benefit automatically from a 10% deduction on your income tax for professional expenses, but this lump sum is not always sufficient. If you think you have more important expenses, it is possible to switch to the deduction of real expenses when you file your income tax return. But to avoid any mistake, it is advisable to find out about the 2023 mileage scale before making any changes.
As you can see, the 2023 mileage scale will help you to declare your actual expenses correctly by taking the time to calculate your mileage expenses.
The 2023 mileage scale for a car or a two-wheeler
To properly use the available 2023 mileage scale, you must refer to the mileage but also to your vehicle. If you have a car, you must look at the administrative power in order to know its categorization. This information can be found on your vehicle registration document.
But it is also possible to declare your real expenses with a motorcycle or another type of two wheels. You must find out whether your motorcycle is less than 50m³ or more than 50m³ because the 2023 mileage scale differs. Indeed, if it is superior it is considered as a motorcycle and not a scooter.
But what about electric vehicles? They have not been forgotten! The travel expenses are increased by 20% and are based on the 2023 mileage scale and are calculated by taking into account the costs related to the electronic battery.
But what expenses are covered by this 2023 mileage scale?
Purchase costs for the helmet, protections
Tyre expenses
Fuel consumption or battery recharge
Insurance premiums
Expenses for repairs and maintenance
Depreciation of the vehicle used
Calculate the allowance with the 2023 mileage scale
You understand how the 2023 mileage scale works but you don't know how to do it next? It is necessary to keep track of each expense related to your professional activity such as transportation. To justify your expenses you can keep invoices for example and prepare a clear list detailing the professional expenses. If you wish to declare your expenses as actual expenses, you must gather the relevant documents to show that you exceed the flat-rate deduction of 10%, i.e. approximately 12,800 euros.
Then you can calculate your mileage expenses by using the simulator available on the tax site. This will help you to see if you exceed the 10% or if you don't need to switch to real expenses with all the receipts to keep.
You should not miss the possibility of obtaining financial assistance for professional expenses that you cannot avoid. But to obtain the compensation corresponding to your needs, you will have to make your calculations while taking the time to gather your supporting documents. So take the time to get the information you need to prepare your 2023 tax return and get the compensation you are entitled to without making any mistakes to reduce your business expenses!
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