New Vehicle Mileage Rates You Should Know
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Articles by John Rowe
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.
John Rowe
Director
Business Accounting Services
© Gilligan Rowe & Associates LP
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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
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