Inland Revenue has advised the new mileage rate for motor vehicles is 77 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 motorcycles) irrespective of their engine sizes or whether powered by petrol or diesel and applies from the 2011-2012 income year onwards.
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).
**Note, the rules and the per kilometre rate change regularly and the rates above were accurate at the date of this blog (March 2013). For up-to-date rates, visit the IRD website.
If you would like to discuss how these measures may affect you, please contact us.
We just want to say that with these being the first set of accounts to be prepared for us by GRA, we are very happy with the outcome, and really feel like we are getting the support, guidance and advice that we have spent many years looking for, but only found with yourself and GRA, so thank you for that. We are very happy with the property focus and resources available with GRA to help us move ahead with our Property investment goals too.
- Mike and Annalise, November 2020
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