Taxation
No question of making waves, on the contrary.
A few days before the first round of the presidential election, Bercy launched on Thursday the last tax return campaign of the quinquennium – which remains an obligation for all despite the levy at source – and has not hesitated to highlight the new provisions that can help lighten the taxpayers’ bill a little.
This year, it is more specifically the application of the exceptional revaluation of 10% of the mileage scale that should be closely watched by a certain number of households. Those who suffer the full force of the explosion in fuel prices.
Announced last January by the government to mitigate the cost of prices at the pump, this measure specifically provides for an “exceptional” revaluation of the mileage scale – by 10%, therefore.
This allows households to deduct from their taxable income, each year, expenses related to the use of their vehicle for business travel.
It is determined according to the type of vehicle and the kilometers driven.
However, in order to benefit from this significant boost due to the revaluation, households must opt for the deduction of actual expenses and therefore forgo the flat-rate deduction of 10% that applies automatically.
This is not a foregone conclusion, as this “real expenses” option may be considered more complex.
A lot of people have an interest in switching to actual expenses, they need to take advantage of this tool.
This is the case, for example, of a single 30-year-old man whose net taxable income for 2021 is €28,000 and who travels 50 km each day to get to work.
According to the calculations of the DGFiP, if this person opts for the flat-rate deduction of 10%, he will obtain a deduction of 2,800 € from his taxable income.
If he chooses the deduction of “real expenses”, and thus benefits from the revaluation of 10% of the mileage scale, he will have a reduction of 4 880 €.
To ensure that taxpayers choose the best option, the DGFiP has put online a simulator dedicated to the calculation of mileage and other professional expenses.
More surprisingly, the taxman even undertakes to automatically apply the most advantageous option for households that make a mistake…
Telecommuting expenses
Another measure put forward is the tax credit for households that have installed an electric vehicle charging station in their home.
More specifically, this tax benefit corresponds to 75% of the amount of expenses incurred last year within the limit of 300 € per system of charge, says the tax authorities.
The executive has also decided to renew the exemption of professional expenses related to telecommuting in 2021.
This had been in place for the year 2020 during which many employees worked from home due to confinements and restrictions to combat the coronavirus.
In detail, this exemption is capped at 2.50 euros per day of telework, 55 euros per month and 580 euros per year, slightly more than the 550 euros planned for 2020.
Finally, the tax authorities are working with the Ministry of Education to improve the take-up rate of school grants, which is considered “insufficient”.
Households with children in college or high school will be able to check their entitlement at the end of their online tax return, via a simulator.
This year, the deadlines for filing online are from May 24 to June 8 depending on the department.
Nicolas Brahin expert in tax optimization in Nice
Nicolas Brahin has been a member of the Nice Bar for many years and has assisted hundreds of people in their tax optimization efforts. This trust has been built on the concrete results obtained and the savings made. Equally at ease with foreign clients, Brahin’s firm regularly collaborates with citizens of Scandinavian or Eastern European nationalities.
