Fleet management is a major concern for companies, especially with evolving tax regulations. The taxation on vehicle Benefits in Kind (AEN) will increase by 66% for vehicles made available as of February 1, 2025. This benefit, considered as salary, relates to the private use portion of the vehicle.
This change represents an additional cost but also an opportunity for companies keen on optimizing their taxation and fleet management.
Discover how ACTIA iCAN helps businesses transition smoothly with an intelligent, automated, and compliant solution that facilitates the management of private and professional vehicle usage.
AEN: A strengthened regulatory framework and its impact on fleet taxation
By default, the AEN declaration is done on a flat-rate basis: either proportional to the vehicle’s purchase price (“purchase” base) or proportional to its full annual holding cost (“rental” base).
In both cases, the flat rate assumes that the vehicle is used 2/3 for private use and 1/3 for professional use.
In reality, private use can vary significantly between an executive vehicle and a technician or salesperson’s vehicle. For the latter, private use often represents only about 10% of total usage.
When actual private usage is far lower than the fiscal flat rate, it becomes advantageous for both the company and the employee to declare the real usage.
To do so, it is necessary to measure and justify the actual split between professional and private trips.
ACTIA iCAN positions itself as an essential solution to automate trip traceability and ensure compliance.
How to track private trips?
Each driver has an individual work calendar. This calendar enables an initial automatic classification between presumed professional and presumed private trips.
An onboard switch also allows the driver to manually declare a private trip even during working hours.
At the end of each month, the driver receives a report listing all trips with a “pro” (professional) or “private” label. The driver can confirm professional trips (with an option to add a justification if needed) and remove any private trips. The report then automatically recalculates:
- Total distance: distance traveled over the month, calculated as the difference between the first and last dashboard mileage readings.
- Professional distance: sum of all professional trips.
- Private distance: difference between total distance and professional distance.
Once the report is verified and validated, the employee submits it to the HR/Payroll department, which handles the AEN declaration based on the private usage percentage.
The report is stored as supporting documentation.
ACTIA iCAN: A simple and secure solution for AEN management
The AEN report generated by the ACTIA iCAN solution offers several key benefits:
- Tax Optimization: By proving a mostly professional use, companies can minimize the AEN amount and reduce their tax burden.
- Administrative Simplification: A rigorous management of trips helps prevent declaration errors and the risk of tax audits.
- Regulatory Compliance: Complying with current legislation helps avoid disputes or penalties during tax inspections.
- Transparency and Fairness: For employees using a company car, an automated tracking system eliminates uncertainties regarding AEN calculation and fosters trust with the employer.
- Secure and Accessible Data: The solution generates clear and precise reports, making fleet and accounting management easier.
- Accurate and Reliable Data: Mileage and consumption data are read directly from the vehicle’s dashboard.
- Privacy Protection: Only the employee can view their private trips. The final report transmitted to the employer is cleared of all private trips, ensuring privacy and compliance with CNIL (French Data Protection Authority) recommendations for connected vehicles.
- Employee Responsibility: It is the employee’s responsibility to declare their professional trips.
With ACTIA iCAN, companies benefit from a powerful tool that transforms a regulatory constraint into a lever for financial and organizational optimization.
By automating trip management, they ensure compliance while reducing administrative workloads.
Learn more about ACTIA iCAN and fleet management optimization
Find out how ACTIA iCAN can help you simplify your fleet management and optimize your taxation by visiting our website: ACTIA iCAN.
With ACTIA iCAN, managing company vehicles becomes simpler, safer, and more efficient. 🚀
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