The Accounting Hub logo
Client Portal
Enquire
The Accounting Hub logo
Standard mileage rate increases

by

Picture of Andrew Millington

Andrew Millington

Director and Chartered Accountant

The IRD standard mileage rate for motor vehicles is now 77 cents per km. This rate applies to the 2012 income year.

The standard mileage rate may not be acceptable where an employee’s business travel exceeds 5,000km. The reimbursement should be based on actual expenditure or a reasonable estimate of the expenditure likely to be incurred by the employee.

One way to claim in Xero is to enter the mileage as a supplier invoice, and to either pay the invoice to yourself in cash, or to pay via your shareholder’s current account.

Categories

Related Posts

Cryptocurrency and tax: a growing blind spot for many professionals

Most of our professional and doctor clients who own cryptocurrency would not describe themselves as crypto investors or traders. In many cases they purchased some Bitcoin or Ethereum several years ago, made a few trades, and then largely forgot about [read more...]

Investing has changed – but has your tax thinking kept up?

For many years, New Zealanders looking to grow their wealth had two main options: term deposits and property. Building a diversified share portfolio in the style of Warren Buffett was often out of reach for ordinary investors, as buying a [read more...]

Why good monthly processes make year-end accounts easier

As the end of the financial year approaches, attention often turns to year-end accounts and tax compliance. For many business owners, this can feel like a compressed, high-pressure process where everything needs to be finalised at once. In practice, the [read more...]