Thursday, 28 February 2013

Mileage Rates

As part of running your business, you and/or your staff more than likely travel.

It is often seen as more effort than worth it to do a log book for all travel, record the associated expenses for the year and then apportion the business percentage.

There is an easier way for smaller businesses.

The IRD determines a rate for mileage claims/rebates so that business can use this rate for all kilometers travelled. This rate reflects the average costs associated with running a motor vehicle.

The rate can be used for all mileage during the year that is 5000 km or less.

A logbook of the travel claimed still needs to be done, but the actual costs of running the vehicle are not required.

Inland Revenue has reviewed the motor vehicle mileage rate and has changed it for the 2012 income year to 77 cents per kilometre for both petrol and diesel fuel vehicles. This rate does not apply to motor cycles.

It is appropriate to use this rate to reimburse staff for travel, or to on-charge mileage to customers with this rate.

There are other options for recording/claiming travel costs and if you would like some help with this, please
contact us.

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