Calculating the company car benefit in kind: what has changed since 2025
When an employer makes a vehicle permanently available to an employee, for both professional and personal travel, this private use constitutes a benefit in kind (BEN)This is a form of indirect remuneration that the employee saves and which, as such, is subject to social security contributions as well as income tax.
This framework is well-established. However, its calculation methods have been significantly revised by the decree of February 25, 2025. These changes have a direct impact on the cost to the company and on the employee's net pay. They therefore require particular attention in the management of company vehicles.
A dual system depending on the date of availability
The first point of vigilance for any fleet manager now concerns the date on which the vehicle was assigned to the employee.
The terms and conditions were revised at the beginning of 2025 as part of the updates to the BOSS (Official Bulletin of Social Security) and the URSSAF doctrine.
One point deserves emphasis: a vehicle reassigned after February 1, 2025, will also fall under the new rates, even if it was already in circulation within the fleet. In practice, this means that the allocation date mentioned in the employer-employee agreement becomes essential information. It must be kept and easily verifiable in the event of an audit by the French social security agency (URSSAF).
The two methods of calculating the benefit in kind
The valuation of the benefit in kind can be done using two approaches, at the employer's discretion. This choice can be adjusted according to driver profiles or observed usage patterns. The flat-rate method
The flat-rate method remains the most widely used due to its simplicity. It consists of applying a fixed percentage to the purchase price including VAT of the vehicle, or to the total annual cost in the case of a lease.
Contrary to some misconceptions, the applicable rates have not been recently increased. The current rates are those defined by administrative guidelines (BOSS) and remain as follows:
Vehicle purchased
- 9 % of the purchase cost including VAT for a vehicle less than 5 years old, excluding fuel costs
- 12 % of the purchase cost including VAT when the fuel is paid for by the employer
- 6 % of the purchase cost including VAT for a vehicle over 5 years old, excluding fuel
- 9 % with fuel for a vehicle over 5 years old
These rates are currently the only applicable scales in the event of an URSSAF audit.
Concrete example
Vehicle purchased for €35,000 including VAT (< 5 years old, without fuel)
- Calculation: 35,000 × 9 % = €3,150 / year
With fuel:
- 35,000 × 12 % = €4,200 / year
Rental vehicle (long-term lease or lease with option to buy)
In the case of a lease, the calculation is based on the total annual cost borne by the company (rent, maintenance, insurance).
- 30 % of the total annual cost without fuel allowance
- 40 % of the total annual cost with fuel
The amount obtained is capped : it cannot exceed the one that would have been calculated if the vehicle had been purchased.
This method has a clear advantage in terms of simplicity. It requires no mileage tracking and significantly reduces the risk of reporting errors. However, it does not reflect actual vehicle usage, which may make it less relevant when personal use is minimal.
The actual expenses method
The actual cost method is based on a more precise assessment, based on the expenses actually incurred by the company and on the actual use of the vehicle.
The calculation takes into account:
- vehicle depreciation (or the annual rental cost)
- maintenance and repair costs
- insurance premiums
- fuel expenses corresponding to personal use
The benefit in kind is then determined based on the private use share of the vehicle.
Unlike the flat-rate method, There is no fixed percentage (such as 20 % or 10 %) applicable in this context.The calculation is based exclusively on actual costs and their breakdown between professional and personal use.
This method can be more advantageous when private use of the vehicle is limited. However, it requires a significant commitment: the ability to accurately justify the kilometers driven for personal purposes.
The employer must therefore be able to demonstrate the distinction between professional and private use (mileage records, tracking tools, etc.). In the absence of sufficient supporting documentation, the URSSAF (French social security agency) is entitled to recalculate the benefit in kind on a flat-rate basis, with the risk of an adjustment.
The favorable regime for electric vehicles
For vehicles running exclusively on electricity, a specific regime applies until the December 31, 2027It aims to encourage the transition to lower-emitting fleets.
The electricity costs covered by the employer for charging are excluded from the calculation of the benefit in kind, regardless of the method chosen.
In addition, a reduction is applied to the value of the benefit in kind:
- 50 % of the calculated advantage
- within the limits of €2,000.30 per year
This system makes it possible to significantly reduce the taxable benefit in kind, and therefore the associated social security contributions and tax.
It represents a concrete lever for companies wishing to electrify their fleet while controlling their overall cost.
Why precision is essential
An inaccurate or poorly documented assessment exposes the company to a real risk of URSSAF audit. Failure to file a declaration or an error in the Nominative Social Declaration (DSN) can result in penalties and late payment interest.
For the employee, the impact is immediate. The benefit in kind increases the base for social security contributions and income tax.
For your information, €100 additional benefit in kind may lead to a decrease of approximately €70 to €80 of the net salary available, depending on the level of load.
The reliability of the data, private mileage, professional mileage, date of availability or even fuel coverage, is therefore essential to guarantee compliant management.
Ensuring data reliability through fleet management tools
In this context, connected fleet management solutions provide a concrete answer. They allow for the automatic collection of data necessary for calculating benefits in kind and ensuring the accuracy of declarations.
These tools offer, in particular, the ability to distinguish between business and personal travel, while centralizing information useful for payroll and the DSN (French social security declaration). They thus facilitate the application of the actual expenses method and provide reliable supporting documentation in the event of an audit. Do you want to secure your calculations and ensure the reliability of your fleet data?
Request a SoFLEET demo and simplify the management of your benefits in kind.
Official sources
- BOSS (Official Bulletin of Social Security) – section Benefits in kind – Vehicles
- URSSAF – Guide “Valuation of Benefits in Kind”
- Social Security Code, article L242-1
