Are you newly offering the Mobility Budget to your employees in Payflip and need to calculate the TCO for one or more employees?
Were you offering the Mobility Budget to your employees before the introduction of the new formulas, and you need to calculate the TCO for one or more new employees?
Don't panic, Payflip is here to help you see things more clearly!
The Mobility Budget is determined based on the TCO ("Total Cost of Ownership"), which corresponds to the annual gross cost of a car for the employer. The Royal Decree of 10/09/2023 defined the 2 calculation methods that are applicable from 01/01/2024.
Let us explain how to calculate the TCO from 2024!
Thanks to this article:
1️⃣ Choose your formula
First, you need to choose the TCO calculation formula.
You need to make 2 choices:
Which formula will you apply?
The actual costs formula
The flat-rate costs formula
How will you apply this formula and calculate the TCO?
On an individual basis, per employee
Based on job category, by choosing a reference car
⚠️ The same method, actual or flat-rate, must be applied for all employees of the company.
➡️ Formulas
| Formula based on real value | Formula based on the flat-rate value |
Formula details | Evaluation of the actual cost of the car assigned to an employee over the last 4 years of use (or as long as possible if they have used it for less than 4 years).
The TCO consists of all actual expenses incurred by the employer to finance a company car as well as related costs mentioned in the car policy.
| The calculation depends on the type of vehicle. A distinction is made between:
In both cases, the TCO consists of:
|
For whom? 🤷🏽 | For employees who have a company car at their disposal and decide to give it up in favor of the Mobility Budget | For employees who do not (yet) have a company car and therefore are not giving up an existing car. For example:
|
➡️ Payflip's advice
💡 In practice, Payflip finds that the flat-rate method for leased cars is the most commonly used. Indeed, this method is:
easy to implement
and very transparent for employees
It is often applied by job category based on a reference car.
2️⃣ How to apply the new formulas? Some advice from Payflip 🤔
Were you already offering the Mobility Budget to your employees before 2024, and therefore using the old formulas? Do you need to recalculate the TCOs?
Here's a short guide. 👇🏼
Formula based on real value | Formula based on the flat-rate value - rented or leased cars | Formula based on the flat-rate value - owned or financially leased cars |
There are no changes compared to the old calculation that Payflip provided you. If you use this formula, you can continue to apply it.
For an update, see the tab related to this formula in our TCO calculator. | There are no changes compared to the old calculation that Payflip provided you, if fuel costs are included in the annual cost of rental or leasing.
❗️If fuel costs are not included in the annual cost of rental or leasing and you offer a fuel card or electric charging card, recalculate the TCO based on the related tab in the TCO calculator.
| You must apply the new formula published by the government.
❗️Recalculate the TCO based on the related tab in the TCO calculator. |
3️⃣ How to use Payflip's TCO calculator? 🎮
Payflip has created its TCO calculation file that we make available to you so that you can calculate the TCO applicable to your employees yourself.
Download the TCO calculator here.
Payflip's TCO calculator file consists of 2 tabs:
The actual costs formula: you can calculate the TCO based on actual costs.
The flat-rate formula: you can calculate the TCO based on the flat-rate method depending on whether you use a leased/rented vehicle, or one purchased/financially leased by the company.
Once you have chosen the formula you will apply, calculate the TCO directly in the tab of the chosen formula.
How to do it?
🔵 Fill in the blue boxes
🟠 Make a choice in the orange boxes
📞 For certain information, don't hesitate to call your accountant (for example for VAT or corporate tax).
❓If you have any questions about the file, don't hesitate to contact us via chat.