Can anyone shed some light on Vehicle Mileage Reimbursments for work?

[Ice_Monsta]

Hi all,

Just doing some research on using my motorbike to get places for work.

Checking out the IRD information - it says the vehicle reiumbursement rate does not apply to motor cycles.

"The rate applies irrespective of engine size or whether your vehicle is powered by a petrol or diesel engine. The mileage rate does not apply to motor cycles."

( http://www.ird.govt.nz/business-income-tax/expenses/mileage-rates/)

Does anyone have any information on what rate DOES apply to motor cycles? Because at this stage my employer is now telling me there is no rate...suggesting there is no reimbursement? Obviously this can't be the case, as pre April 1st 2008 there was a rate for motorcylces.

If anyone knows the ins and outs of this, or understands the whole lot better than I do, please let me know.

Thanks


Steve

[YellowDog]

When I had guys working for me and they had to get from A to B, the ones with motorcycles I just treated as a 1ltr car.

The IRD didn't ever querie it.

Ask your boss if he is expecting you to take the gas plus wear and tear out of your own pocket?

[Gareth123]

Or just ask for a company car. Woolworths pay me 62c a km.

I've diven from Rangiora to ashburton for work before. Almost got paid more driving than I did for working that day!

[Insanity_rules]

I'd call the bastard patrol (IRD) and find out. I've been claiming as a car self employed and they havent blinked an eye. its the first time I 've heard that the rate doesn't include bikes.

[JimO]

i had a building firm tell me they charge $2.00 a k

[Oakie]

Well bugger me! The rate has been 62 cents per kilometre forever and now I see it went up to 70 cents nearly 2 years ago. Never heard a thing about that.

It seems that there is indeed not a rate for motorcycles. This means you need to negotiate a rate with your employer. The problem may be though that the IRD won't recognise the rate ... but that is your employers problem I guess. I'd start off by asking for the same rate as other motor vehicles ... be it .62 or .70. Counter what they say about lower fuel costs for a bike with our higher ACC costs and more frequent tyre replacement. I put in a claim today for a bit of running on my bike for work and even at .62 cents a km I'm making money ... $22 for 36km running ... sweet! Great life getting paid for riding with my expenses met. Not quite as good as the time I got to 'be intimate' with my wife while on the company clock ... but close.