In order to meet the economic and environmental challenges, many companies are looking to green and even reduce their car fleets?
Mobility Credit is an interesting tool to make this transition.
It allows a company car to be replaced (totally or partially) by a smaller car (an electric city car for example) and/or a sum of money that the employee can use to finance his or her travel (home-work journeys, leisure activities, etc.). In the case of a complete renunciation of the company car, the Mobility Credit will be more important.
How does Crédit Mobilité work?
The Mobility Credit is aimed at companies whose employees have company cars. The scheme provides a budget dedicated to the mobility of each employee so that they can leave their car behind for a more environmentally friendly... and often more economical alternative.
This idea of mobility credit is based on 3 pillars:
- The choice to provide the employee with a less polluting vehicle (electric or hybrid) that emits less CO2.
- The choice to use the balance of the Mobility Credit for more ecological transport alternatives (car-sharing or public transport, etc.)
- The choice to allocate the amount of the Mobility Credit to the employee each year
What role does taxation play in Mobility Credit?
The Mobility Credit is governed by common law, which means that it is subject to social security contributions, unlike the Forfait Mobilités Durables. In other words, the Mobility Credit is considered as an "Advantage in Kind (AEN)", in the same way as the company car it replaces.
In addition, if the company owns the company car provided to the employee and it was put into circulation 5 years ago or less, then the lump sum benefit in kind will be 9% of the net purchase price.
However, if the vehicle is 5 years old or more, the benefit in kind will only be 6%. The aim of this measure is to rejuvenate car fleets so that vehicles are less polluting and can meet current environmental standards. Thus, the newer the vehicle, the less expensive it will be in terms of repairs or other unplanned maintenance.
The employee will also have to pay income tax on the benefit in kind.
Define the eligibility of your employees
Defining the eligibility of employees who can benefit from the Mobility Credit is not done at random or on the basis of random criteria. In fact, an audit of usage based on essential criteria must be carried out in depth in order to assess the relevance of using this scheme.
For example, an employee living in an urban area and working from home will not have the same mobility needs as an employee living in a rural area. The mobility credit will not be aimed at the rural employee who uses his car every day, but rather at the urban employee to offer him different alternative travel options.
Crédit Mobilité will therefore be aimed primarily at this type of employee who travels on a daily basis and who has access to alternative transport.
The flaws in Credit Mobility
Mobility Credit is an attractive scheme for both companies and employees in many ways. However, the management of the scheme can be tricky if the company does not have an appropriate tool to manage, monitor and analyse these changes. It is therefore preferable to have a management solution dedicated to Crédit Mobilité, and more broadly to employee mobility (see Forfait Mobilités Durables...).
That's why the Mobility Pack solution allows you to easily deploy the Mobility Credit in your company and track the total cost of mobility (TCM) as well as the environmental impact of your employees: allocation of credits to each employee, tracking of expenses (with dematerialised receipts), analysis in terms of carbon impact and TCM, both individually and collectively...
Find out more: mobility-pack.com