The main lever is switching from the flat-rate to the actual-cost method when business use dominates. The actual-cost method applies the private-use share to the vehicle's real costs, reducing the social contribution base when personal trips are limited. For the switch to be accepted by the French social security authorities, you must document the business/personal split of every trip and keep the evidence for five years. Software such as Fleeti automates this measurement from connected vehicle data, applies the official scale from the decree of 25 February 2025, and chooses the more favourable method for each employee every month.

Observed savings range from €1,500 to €2,952 in employer social charges per vehicle per year, depending on the fleet profile, powertrain and intensity of business use. For employees, switching to actual cost can reduce taxable income by up to €2,600 a year, at no extra cost to the company. The figure depends on the vehicle's purchase price, whether fuel is covered, and the ratio of business to total kilometres. A simulator lets you estimate the gain for your fleet before switching.

The decree of 25 February 2025 significantly raised the flat rates for vehicle benefits in kind, for the first time since 2002. For an owned combustion vehicle under five years old, the rate without fuel rises from 9 to 15% of the cost including VAT. For a leased vehicle, it rises from 30 to 50% of the total annual cost. Conversely, fully electric eco-scored vehicles get an enhanced 70% allowance instead of 50%, capped at €4,582 a year until 31 December 2027. The new rates apply to vehicles assigned from 1 February 2025; vehicles assigned before then keep the old rates until they are reassigned.

Not always. The actual-cost method pays off when business use dominates, typically from 60 to 70% business kilometres depending on powertrain and vehicle cost. For a vehicle with little business use, or a fleet of executives with mostly personal use, the flat rate is sometimes simpler and even more favourable. Best practice is to compare both methods every month for each employee, rather than choosing one method for the whole fleet. That is the automatic choice Fleeti makes every month.

The French social security authorities require three things: traceability of every business and personal trip, evidence of the vehicle costs used, and retention of documents for five years. Otherwise, the calculation is reclassified at the flat rate, with back contributions and penalties. The Court of Cassation confirmed this strict approach in a January 2025 ruling. Fleeti automatically produces the required documents: monthly summary per employee, breakdown of business and private kilometres, application of the current scale, and time-stamped archiving over five years. The file can be exported in one click in the format the inspector requests.

The flat rate applies a percentage of the vehicle's cost (15% of the purchase price including VAT for a combustion vehicle under five years old, 50% of the annual cost for a lease). The actual-cost method applies the private-use share to the vehicle's real costs (depreciation, fuel, maintenance, insurance, financing). The flat rate is quick to apply; actual cost requires mileage tracking but reduces the benefit in kind when business use dominates. The choice is made employee by employee and can vary from month to month.

An actual-cost benefit in kind is included in France's monthly DSN declaration like any other benefit in kind: section S21.G00.51 (Remuneration), code 30 (benefit in kind). No specific field distinguishes flat rate from actual cost in the DSN; internal documentation (method, kilometres, evidence) proves the method in an audit. Fleeti pre-formats the values and provides the supporting detail, ready for your payroll software.

Vehicles assigned before 1 February 2025 keep the old rates until they are next reassigned. A combustion vehicle bought in 2024 and still assigned to the same employee is still calculated at the 9% flat rate (or 12% with fuel), without the new scales. The new 15% rate (or 20% with fuel) only applies to vehicles assigned or reassigned from 1 February 2025. Switching to the actual-cost method is possible at any time, regardless of this date.