Kilometric expenses, also known as mileage allowances, are a tax benefit available to certain employees or sole proprietors who use a vehicle (car or motorcycle) for business purposes.
By respecting the scale set by the tax authorities, these taxpayers can deduct their travel expenses from their income tax. All employees are entitled to a tax reduction as long as they use their car for business travel and pay the expenses out of their own pocket. On the other hand, the employer must, in principle, reimburse all expenses incurred by the employee who is obliged to use his or her own car for business purposes. This does not include travel between home and work. Just like expenses for accommodation, meals, train and plane tickets, car rentals, cabs... vehicle-related expenses are covered, but sometimes in different ways. They can be reimbursed by the employer, who will apply the same mileage scale published each year by the tax authorities, whereas other expenses require the presentation of receipts.
How can you raise the subject of mileage expenses with your management if they don't reimburse your expenses properly? Read our advice.
How do you lead the discussion?
The first thing you need to do is find out about the company's practices in this area, as soon as you are hired, to avoid any misunderstandings later on. Examine your employment contract. It often states that "the employee may be required to travel on business in the course of his or her duties". This does not mean, however, that all travel arrangements are stipulated. By law, without a specific clause, the employee's agreement is tacit.
If regular travel is to be expected, it's a good idea to know the geographical area of travel, the duration, frequency and means of transport to be used, as well as the receipts to be provided, the basis and deadline for reimbursing expenses, the name of the person responsible for managing expense claims, the procedure to be followed...
Some employers add a professional mobility clause to their employment contract, and compile travel instructions in a format accessible to those concerned.
Before starting a discussion with your management, it's best to have all these elements in your possession.
Then present your arguments: give the reasons why you feel your claim is justified. Provide concrete evidence: receipts, invoices, bank statements, etc.
Be concise and speak calmly. Stay focused and don't deviate to another subject. Explain your request clearly.
Listen to your management's arguments and ask questions to get specific answers. Communicate constructively to try to reach an agreement. Don't get hung up on details.
Whatever the outcome of the interview, stay in control and act like a professional. There's no point in showing your emotions, whether you're satisfied or upset.
What arguments should you use with your management?
Here are a few arguments you can use to justify your travel expense claim.
As an employee, if you have to use your own car to go to business meetings or appointments, to canvass customers, to supervise building sites, to drop off goods or documents at another outlet... this will inevitably generate additional expenses. Fuel costs, of course, but also parking and toll charges, not to mention the wear and tear on the car requiring more frequent maintenance. These costs can represent substantial sums, and management needs to be aware of them.
Mileage reimbursement policies vary from one company to another, and even from one department to another within the same company. Once you've made enquiries, if you feel you're being treated unfairly compared to another member of staff, let us know.
Non-reimbursement or insufficient reimbursement of mileage expenses is bound to have an impact on your productivity. Make sure your managers understand that if you have to pay a certain amount out of your own pocket every month on behalf of the company, you'll tend to cut down on your travel to save money, which can be detrimental to them.
Finally, after examining the law on the subject, if you realize that your company is not in the right, without going as far as the Labour Court, put your management on notice to encourage them to comply with the legislation.