To deal with economic and environmental problems, many businesses are looking to green and even reduce their car fleet.
Mobility Credit is an interesting tool for achieving this sustainable transition.
This system offers the possibility of replacing (totally or partially) a company car. For example, with a smaller model, like an electric city car. A sum of money can also be given to the employee, which he can use to finance his trips (trips between home and work, leisure). If the company car is completely abandoned, the amount of the mobility credit will be higher.
How does the mobility credit work?
The mobility credit is aimed at companies whose employees use company cars. This program proposes a specific budget for employee mobility. Therefore, it encourages every employee to abandon their vehicle in favor of a greener alternative. For example, a greener and more economical solution. This initiative thus promotes the transition to sustainable transport options.
The idea of a mobility credit is based on 3 pillars:
- The possibility of providing employees with a less polluting vehicle (electric or hybrid) that emits less CO2
- The choice to use the balance of the mobility credit for more environmentally friendly transport alternatives (carpooling, public transport, etc.)
- The allocation of the sum of the mobility credit to the employee each year
What is the role of taxation in mobility loans?
Mobility credit is governed by common law. This means that it is subject to social security contributions, unlike the sustainable mobility package. In other words, the mobility credit is considered to be an “advantage in kind (BIK)”, in the same way as the company car it replaces.
If the company owns a company car that has been used for 5 years or less, the benefit in kind is calculated differently. In this case, the fixed amount will be 9% of the net purchase price of the vehicle.
If the vehicle is 5 years old or older, the benefit in kind is fixed at 6%. This measure encourages businesses to renew their vehicle fleet in order to reduce polluting emissions. The new vehicles are better adapted to current environmental standards. They also help reduce unexpected maintenance and repair costs. By investing in new models, businesses can save money in the long run.
The employee will also have to pay income tax because of the benefit in kind that he will receive.
Define the eligibility of your employees
The eligibility of employees for the mobility credit cannot be determined at random. A thorough audit of the use is necessary, based on essential criteria. This audit makes it possible to assess the relevance of the use of this device for each employee.
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 intended for rural workers who use their cars every day, but rather for urban workers, in order to offer them various alternative travel options.
The mobility credit will therefore primarily be aimed at this type of employee, who travels every day and who benefits from transport alternatives.
The shortcomings of mobility credit
The mobility credit is an attractive program both for companies and for employees in many ways. However, system management can be tricky if the business doesn't have the right tools to manage, track, and analyze these changes. It is therefore preferable to have a management solution dedicated to Mobility Credit, and more generally to the mobility of employees (see Sustainable Mobility Package, etc.).
This is why the Mobility Pack solution allows you to easily deploy mobility credit in your company. It allows you to track the total cost of mobility (TCM) as well as the environmental impact of your employees. On the platform, it is possible to:
- assign credits to each employee
- track expenses (with dematerialized receipts)
- analyze the impact of carbon and TCM, both individually and collectively...
For more information: mobility-pack.com
