2019/2020 mileage rates
The IRD has released mileage rates for 2019/2020. This information will be of use to anyone who runs a vehicle for work purposes.
If you have a vehicle used only for business purposes, you can claim all running costs as a business expense. If the vehicle is used for both business and personal trips, you will need to work out how to allocate costs correctly. The recently announced 2019/2020 mileage rates will affect how you do this.
The new Tier One rate - relating to your vehicle's fixed and running cost - has increased. The IRD says the increase reflects rises in owning a vehicle, including insurance and registration charges.
The new Tier Two rate - relating to running costs only - has lowered. The decrease reflects the lower overall cost of operating a vehicle mainly due to lower fuel prices.
Any employer needing to estimate reimbursements for employees who use their vehicle for business purposes will also need to be aware of the new mileage rates.
The new 2019/20 mileage rates:
||Tier One Rate
||Tier Two Rate
|Petrol or Diesel
If you've already filed your 2020 income tax return using the previous rates, get in touch and we can help with any amendments you may need to make. Find out more information on the 2019/2020 mileage here.