IRD has reviewed the motor vehicle mileage rate to reflect the average cost of running a motor vehicle, including the average fuel prices, and advises the mileage rate for the 2013 income year will remain at 77 cents per kilometre for both petrol and diesel fuel vehicles.
Self-employed taxpayers have the choice of using the IRD’s mileage rate, or using actual costs if they consider that the IRD’s mileage rate does not reflect their true costs. Those that choose to use actual costs must keep records to support the expenditure claimed.
Employers can use the 2013 vehicle mileage rate as a reasonable estimate of costs when they reimburse employees for the use of their private vehicle for business related travel. Alternatively employers can reimburse employees using a rate published by other reputable sources, for example the New Zealand Automobile Association Incorporated.
Note that the mileage rate does not apply in respect of motor cycles.
If you have any questions, please contact your Hayes Knight advisor or our tax team:
Shelley-ann BrinkleySenior Tax Manager
T +64 9 414 5444
Phil BarlowTax DirectorT + 64 9 414 5444