12/11/2023 0 Comments Contractor mileage reimbursement![]() Your records will need to show the reasons for and the distances of journeys for business travel. If you use this method you must keep accurate records including details of private and work-related expenses. You can claim deductions on your actual costs including depreciation loss for the business use of your motor vehicle. If you believe your vehicle costs are higher than the rates given you can use the actual costs option. More information will be provided once the rates are available. A draft statement will be released for consultation later this year. The kilometre rates will be set by reference to industry figures and based on the average per kilometre cost for the average vehicle. a mileage rate for distances of 5,000 km or less a year.įor the 2017-18 and later income years you will be able to use kilometre rates published by Inland Revenue to calculate the amount of allowable expense in relation to the cost of using your motor vehicle for business purposes.There are three ways you can calculate the proportion of business use of your motor vehicle: The mileage rates for hybrid and electric vehicles apply from the 2016-17 year onwards.Ĭalculating business motor vehicle use if you're self-employed The mileage rate does not apply to motorcycles. The 73 cents per kilometre rate applies irrespective of engine size or whether your vehicle is powered by a petrol, diesel or hybrid engine. For distances greater than 5,000 km, you must keep a record of actual vehicle expenses. You can use this rate for up to a maximum of 5,000 km of work-related travel per year. If you have a non-standard balance date the rate applies from the beginning of your relative income year. Rates apply to each income tax year (1 April to 31 March). The mileage rate for motor vehicles is 73 cents per kilometre for both petrol and diesel fuel vehicles.įrom the 2016-17 income year, different rates apply for hybrid and electric vehicles: You can use the mileage rates for the 2017-18 and prior income years. ![]() If you're self-employed you can use our mileage rate to calculate the cost of using your motor vehicle for business purposes.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |