Increased IRD Mileage Rate

The IRD's mileage rate has been increased to 73 cents per km (up from 72 cents) effective for the 2017 financial year. This applies to both petrol & diesel fuel vehicles. The increase is largely due to higher average fuel costs and a slight increase in fixed vehicle costs during the 2017 Financial Year. For the first time, they have also set mileage rates for hybrid & electric cars. These... More

Topics: Claimable Expenses Rental Property Accounting Business Inland Revenue Vehicles Contractors

Posted 19/05/2017

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Buying a Vehicle for a GST Registered Business?

If you are purchasing a new vehicle for your GST registered business there may be GST implications surrounding the amount of GST you can claim on the purchase price if there will be private use with the vehicle. GST can only be claimed on the amount of business use the vehicle will conduct in the financial year the purchase falls into. As always you're most welcome to contact us if you need any m... More

Topics: GST Vehicles Private Use

Posted 17/06/2013

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Kiwitax Vehicle Log Books - Available Free to Clients

Keeping a log book to record vehicle use is essential for ensuring an accurate expense claim. To help make this process a little easier we've had some small log books printed and these are available to clients for free. These are useful for both business and rental property owners. If you would like one (or more for multiple vehicles) please ask, we'll pop it into the post asap. Prefer an el... More

Topics: Claimable Expenses Record Keeping Vehicles Client Care Freebies

Posted 13/05/2013

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Employee Vehicle Reimbursements

If you are paying your employees a motor vehicle allowance as a part of their salary package this is taxed as a part of their wages. A better way would be for the employee to submit their actual expenses for reimbursement or submit a mileage claim. Both of these are non-assessable in the hands of the employee and are claimable as a tax deduction for the business, therefore removing the need for th... More

Topics: Claimable Expenses Tax Compliance Vehicles Salary & Wages

Posted 9/11/2009 – Updated 3/09/2014

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Vehicle Ownership Vs Leasing - A Brief Overview

The benefits of leasing a vehicle are: Get to claim the lease as a monthly expense. May have an upgrade option after a certain period with keeping the lease payments roughly the same. Still get to claim running costs – e.g petrol, repairs, registration etc. The disadvantages of leasing are: Paying monthly payments for a vehicle you usually won't own at the end of lease. No deprec... More

Topics: Claimable Expenses Business FBT Vehicles Guides

Posted 16/01/2009

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Claiming GST On Second Hand Goods

If you purchase secondhand goods for use in your business from someone not associated to you (eg not a family member or relative) - these can be claimed for GST purposes. Examples are things such as vehicles and trading stock. However  there is a restriction on secondhand goods claims if your purchase goods from an unregistered associated person. No GST input tax may be claimed if the associ... More

Topics: GST Stock Record Keeping Vehicles Guides

Posted 8/10/2008 – Updated 23/09/2014

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