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.
Anna is fantastic. We often have lots of quick questions which are swiftly answered by Anna via a return phone call or by email. Her team is also very responsive.
- NC, November 2023
Investing in residential property?
If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.
Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.