What is mobility credit?
The mobility credit is one of the components of the company’s mobility policy. Allows employees to benefit from financial compensation if they agree to give up, in whole or in part, a company car.
Definition of mobility credit
The mobility credit is an eco-responsible alternative to the company car. This is a financial package that employees who forgo a company car can benefit from. Its value depends on the cost of the car normally allocated and the waiver granted by the employee (full/partial).
The objectives of the mobility credit
The mobility credit aims to reduce CO emissionstwo produced by companies and their employees as part of their business trips. How ? By reducing company vehicle fleets, while rewarding employees who are involved in the energy transition, adopting an ecologically responsible and more environmentally friendly mobility service.
Mobility credit: operation and implementation in the company
In principle, the worker has a kitten, the amount of which compensates for his resignation from a company vehicle or his acceptance to benefit from a more modest car than expected.
With the amount of money allotted to him, the company employee can pay all his business travel expenses but also personal travel expenses.
To be beneficial to everyone, the mobility credit must be methodically applied across the enterprise. Its repercussions on fleet management must be analyzed before taking measures to avoid additional costs for the company.
To successfully set up mobility credit in a company, it is advisable to proceed in several steps. It is first necessary to assess the impact of such a system for the company: budgetary, social, tax, environmental, etc.
Fundamentally, this preliminary analysis stage consists in particular of:
- determine the objectives pursued by the application of the mobility credit in the company: limit the number of vehicles in its fleet, reduce CO emissionstwooffering new travel solutions better suited to the needs of employees, etc.;
- identify the eligible workers and the number of vehicles involved in order to be able to calculate the potential benefits for the company;
- estimate the social and financial impact of the mobility loan on the company, based on different options (total waiver, partial waiver, car sharing, etc.): it is imperative to know well the TCO of your car fleet in order to estimate the potential benefits.
When the decision to apply the mobility credit is made, the company can then:
- consult with staff to ensure adherence to the system and obtain agreement from a sufficient number of staff;
- structuring the offer by proposing different formulas to meet different needs, evaluating the number of envelopes needed and validating the social and fiscal regime of each option;
- Plan the implementation of mobility credit taking into account the expiry of vehicle rental contracts if necessary;
- Integrate mobility credit into your car policy;
Once implemented, it is also necessary to monitor the costs generated by the mobility credit for each employee in question and evaluate the system to propose possible adjustments over time.
The mobility credit financially compensates for an employee’s decision to give up a company car, knowing that this waiver may be full or partial. The allocated amount is calculated differently depending on the case.
In case of partial surrender of the company vehicle
Partial layoff refers to an employee choosing a vehicle that is smaller than the company car that would be assigned to him. In this case, the mobility credit granted as compensation corresponds to the difference in TCO (Total Cost of Ownership) between the two vehicles.
In case of total surrender of the company vehicle
We speak of a total waiver when an employee purely and simply waives the use of a company vehicle. In return, he may receive financial compensation equivalent to the full amount of the TCO he forgoes.
What is the difference between the mobility credit and the sustainable mobility package (FMD)?
Like the mobility credit, the sustainable mobility package (FMD) is aimed at employees. But the two aids do not fulfill the same award conditions.
The sustainable mobility package: financial assistance for home-to-work travel only
Introduced in May 2020 by the LOM Act, the Sustainable Mobility Package (FMD) is an optional financial aid. Your objective ? Contribute to the transport costs of employees when traveling from home to work. Its assignment must have been foreseen by agreement of the company.
To benefit from the sustainable mobility package, employees must demonstrate that they prefer light modes of transport to reach the workplace: bicycle, scooter, carpooling, public transport, shared mobility services, etc.
Financial aid lower than the mobility credit, but partially tax-free
The amount of foot-and-mouth disease can vary:
- up to 200 euros/year in the public sector;
- up to 600 euros/year in the private sector.
This is disproportionate to the amounts that can be awarded under the mobility credit, which can amount to €10,000/year. However, this aid is tax-exempt for workers up to a limit of €500/year.
Exemption from social security contributions is also granted upon presentation of proof of payment. Please note, however, that the contribution exemption cannot be combined with the specific flat deduction for business expenses (DFS).
Mobility credit taxation
For the company
Mobility credit taxation differs according to the vehicle fleet management methods.
If the company owns the vehicle, the fixed amount of the benefit in kind is 9% of the acquisition cost, including taxes, for a vehicle that is 5 years old or less (reduced to 6% if the vehicle is more than 5 years old). When the employer pays for fuel, this lump sum is increased by actual fuel costs or increased to 12% of the purchase price, including tax, for a vehicle that is 5 years old or younger (reduced to 9% for a vehicle that is more than 5 years old). years old) .
For a rented vehicle, the amount considered by the URSSAF as a benefit in kind may be subject to a fixed annual amount of 30% of the total cost of the rental, or even 40% if the employer pays the fuel.
to the employee
The mobility credit is considered an in-kind benefit. Therefore, its value is subject to income tax.
The benefits of mobility credit
Well used, the mobility credit can help the company to optimize the management of its fleet of cars and to reduce its costs. On the employee side, it is an opportunity to engage in the green transition, providing additional purchasing power.
For the company
The mobility credit can allow the company to:
- reduce your carbon footprint;
- limit the size of your vehicle fleet and increase your utilization rate;
- optimize your costs related to staff mobility.
The convenience of its use must be studied in conjunction with the company’s CSR policy and its mobility plan.
The mobility credit is a way for employees to:
- bet on the ecological transition thanks to customized mobility solutions, perfectly adapted to your needs;
- benefit from a sum of money to be used freely for their mobility, both professional and personal.
At a time when fuel prices continue to rise, not to mention the increasingly severe parking constraints, all these are advantages for employees who can thus gain purchasing power.
The value of the mobility credit is defined based on the total cost of ownership of the vehicle, that is, the TCO (Total Cost of Ownership). In the event of a total waiver of the company vehicle, the employee receives an amount equivalent to the total TCO of the vehicle. In case of partial waiver, the mobility credit corresponds to the difference in TCO between the company car normally allocated and the more modest vehicle chosen as a replacement.
The mobility credit is intended for employees who have a company vehicle, or who can benefit from one in their company. This budget envelope is awarded as compensation when an employee agrees to partially or totally give away a company car.
The mobility credit is only intended for employees who are eligible for a company vehicle. On the other hand, the sustainable mobility package can benefit all employees, as long as they are included in a company agreement. Foot-and-mouth disease concerns only displacement. But it can be combined with the payment of subscription costs for public transport, fuel and/or electricity supplied to electric, hybrid or hydrogen vehicles, which is not the case with the mobility credit.