All about costs

As human resources, an important part of your work is to manage Fresh notes. For employees, it is advanced money in their pockets on behalf of the company.

The reimbursement of costs is rigorously framed by law. It is also one of the main sources of discord between employer and employee.

What is a cost note?

A cost note is a document established by the employee, in order to be refunded for an expense, with his employer. In paper or digital format, the cost note generally concerns an advance made by the employee of expenses in office on the company.

This can for example be:

1. Train tickets taken to sign a contract with a supplier
2. Petrol inserted in a vehicle to go to have a customer
3. Meals taken as part of an external training
4. Nights of the hotel as part of a business trip

The two main reasons that justify the costs of costs are the progress of personal money on behalf of the company and the professional framework in which this expense took place.

In addition, the law rigorously frames the functioning of the costs and lists the expenses they could reimburse.

Costs costs must be justified impractically by the employer to the tax administration. This is the reason why the employee must provide him with the support documents (invoices or receipts of his expenses).

What information should appear on a cost note?

Be valid and refundable, Cost costs must be accompanied by the test.

This costs of the costs must in particular contain:

• The payment date;
• The amount of payment including the tax;
• The reason for the operation.
• The name of the merchant or supplier;
• The quantity of VAT;
• VAT rate.

In some cases, the employer may request more details from the employee such as the number of guests or the customer’s name in order to justify the costs of the costs.

Note : Some expenses are not subject to VAT as purchases made by auto enthrepreneurs.

Reimbursement of costs

There are different types of reimbursement of professional commissions.

Mileage allowance

The best -known paid note is undoubtedly the refund of kilometer costs. More often they calculate according to a mileage scale.

In 2022, in the face of the outbreak of fuel prices, the scope of the kilometric allowances was re -evaluated by 10 % by the government.

But how to calculate the kilometer costs?

1. We define the administrative power of the vehicle, this gives us a price per kilometer (between € 0.502 and € 0.661 per kilometer)
2. We multiply the number of kilometers by the price per kilometer
3. Over the 5000th kilometer, the employee gets a bonus
4. Over 20,000 kilometers, the employee gets another bonus

These amounts vary every year and are set by law. The calculation is binding and it is absolutely necessary to be able to justify every leachate kilometer.

Notes on travel expenses

Depending on the needs of your company, your employees will be led to travel by different means and generate costs. And as regards mileage costs, these travel costs must be justified.

All other means of paid transport, as part of a business trip, are probably considered as costs, as well as all additional costs:

• Airplane
• Boat
• Carpooling
• Buses and trams in the cities
• Parking expenses
• Tolls
• Vehicle insurance and maintenance for a long journey

Note: Work trips at home are not counted in reimbursement of expenses. Half of the transport subscription must in any case be taken care of by the employer.

Notes on accommodation costs

If the business trip requires sleep on site, accommodation costs must be reimbursed by the company.

In general, it is the company that chooses the accommodation, the employee who is advanced the costs and the company Resbova with a paid note. This accommodation is generally a hotel and must take place with a professional, who will be able to issue an invoice!

Notes on meal costs

During his journey, the employee must be able to eat. In exchange for an invoice, it may request to be reimbursed by its employer by presenting the corresponding costs of the costs.

In general, the employee has a flat -rate sum for a meal.

In case of overcoming, the difference is responsible.

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Treatment of professional costs: what does the law say?

According to the law, the employee is 5 years old to provide you with the invoice. In fact, many employees ask for a refund as soon as possible, especially because sometimes it makes a significant outlay in their budget.

Once the costs of the expenses and support documents have been recovered, they must be accounts and the refund generally requires 1 month.

You can also wait for the payment of the salary of the month to add the reimbursements of the expenses there and then make a single transfer.

In reality, the law does not provide for rigorous deadlines to reimburse costs costs, if not an «acceptable period». Consider that a month is a reasonable moment.

On the other hand, the law obliges to maintain all documents in support of at least 5 years. Reimbursement of illegal costs are one of the most common means for companies to reduce their taxable profit or to complete the remuneration of an employee without paying social and employers’ contributions.

ADVISE : Urssaf is extremely vigilant about it and tax adjustments can be very penalizing! Avoid reimbursing a note of costs without evidence, except in case of truly exceptional.

🚀 The factorial is certified by USSAF in France! This means that our customers no longer have to keep their receipts/invoices in the paper version.

Work in concert with the financial service of your business to avoid any problem!

How to justify an invoice without an invoice?

The invoice is essential for the employee since it is the proof of the expenses made. Allows the company to check the amount of expenses, facilitate refund, justify the costs of the costs and recover everything or part of the VAT paid.

Suffice it to say that as a employer there are risks to reimburse a note of costs without an invoice:

• Penalties in case of control,
• Coating as an advantage in nature (which implies the payment of social contributions among others)

But what solutions are available for you? You have two possibilities.

1- reflect on a zero tolerance policy

Without receipt and without a commission of costs, no possible reimbursement. The employee must therefore take on his professional expenses. And avoid any risk of sanction.

2- Offer an alternative to the loss of the invoice

You can be flexible in front of an employee in good faith.

• Contact the supplier to have a copy of the invoice
• Ask your employee to provide a bank account in which the expenditure concerned appears
• Ask your employee to write a certificate in honor (mention the context, the type of tax, the name of the supplier, the date, the place, etc.)

The tax administration that can be tolerance when the situation is exceptional.

Note Pigchi: Free model to download

Download ours model Excel Fresh free notes With the mileage scale 2024!

Fill the information on the calculation sheet and keep the professional costs of still high employees.

The management of your employees’ expenses with an Excel file is not the best approach to monitor your employees!

How to recover VAT from costs

Did you know you could recover VAT on professional costs? Make sure the accounting service has support documents that specify the amount of VAT, the rate applied and the TTC price.

But be careful, all the expenses are not influenced by the deduction of VAT. Go beyond reading our article dedicated to Recoverable VAT.

Management of costs on cost: choose the cost cost software

So, the most important to remember regard Fresh notes It’s that:

• These expenses must be connected to a movement of the employee at the request of the company
• That any expense must be justified
• That all costs relating to travel (transport, accommodation, food and additional costs) must be reimbursed

If you want to get efficiency, it could be a good idea of ​​setting up a HR portal like that of the factorial, where the employees who directly put each of theirs directly expenses Fresh notes And the associated support documents!

Employees feel thus enhanced, which is quite positive. And at the same time, there is no need to run after them, you just have to perform the usual checks.

Therefore, you accelerate the reimbursement time Fresh notes And you can focus on more important things for your business!

Optimize the management of costs in your business thanks to the factorial! Ask for a free demo 📝