Inland Revenue has recently advised the new mileage rate for motor vehicles is 70 cents per kilometre.
This rate applies to self employed taxpayers with up to a maximum of 5,000 kilometres of work-related travel each year. This applies to all motor vehicles (except motor cycles) irrespective of their engine sizes or whether powered by petrol or diesel and applies from the 2008-2009 income year.
The rate may be used by employers reimbursing employees for the business use of an employee's motor vehicle. This entitlement extends to shareholder- employees as well.
However, there are other options may be used to establish a fair and reasonable rate for claims or reimbursements (for example, AA rates).
If you would like to discuss how these measures may affect you, please contact us.
John Rowe
Director Business Accounting Services
Learn More about John
Contact John at jr@gra.co.nz or call +64 9 522 7955
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