Chargeable mileage rate?

[Duncan74]

Not sure if this is the right part of the forum (sorry mods if I got it wrong).

I use the bike for a lot of work trips. So far I've been just wearing the cost of the fuel myself. However, after the $1k on new tyres having run up 10,000km in the last 5 months, then I'm leaning towards claiming something back. IRD has rates for cars, but states that it isn't for motorbikes and the employer needs to calculate reasonable costs. Which leads me to ask if anyone else has done this, and if so how they did.

[The End]

Keep a mileage log with your distance traveled + receipts for fuel and other expenses. Submit to accountant (or IRD) and you can claim a portion of it back.

[Ocean1]

Not sure if this is the right part of the forum (sorry mods if I got it wrong).

I use the bike for a lot of work trips. So far I've been just wearing the cost of the fuel myself. However, after the $1k on new tyres having run up 10,000km in the last 5 months, then I'm leaning towards claiming something back. IRD has rates for cars, but states that it isn't for motorbikes and the employer needs to calculate reasonable costs. Which leads me to ask if anyone else has done this, and if so how they did.

The IRD approved rate of $0.74 (?) is supposed to be for irregular use, under a few thousand K / year, (the AA used to publish running cost figures too).

Over that they used to expect you to record actual costs, probably still do. So round up all of your reciepts for last year, (guess fuel) and divide that, (plus reasonable depreciation) by the K's you did last year.

Use that until you can get new figures for this year.

Realistically they're not going to take you to the cleaners as long as you can show that you've made an effort to comply with the reg's.

[Akzle]

Keep a mileage log with your distance traveled + receipts for fuel and other expenses. Submit to accountant (or IRD) and you can claim a portion of it back.

this^

but to expand on it, you claim back as percentage of total costs (for everything not just fuel)

travel 1000km, 600 is for work, claim 60% the cost of tyres, rego, wof, fuel, infringements, snacks, safety gear......
a 3 month logbook is good for claiming that % for a couple of years IIRC, (if usage doesnt vary more than 15%) which if youre pedantic can claim a few more pennies.
(do high work km for 3 months, then 14% less but still claim the full amt)

[Akzle]

The IRD approved rate of $0.74 (?) is supposed to be for irregular use, under a few thousand K / year, (the AA used to publish running cost figures too).
4thou, and not applicable to bikes.

[Duncan74]

http://www.ird.govt.nz/technical-tax/op-statements/os-review-milage-rate-2016.html

"reimbursement of employees.

The mileage rate does not apply in respect of motor cycles, hybrid and/or electric motor vehicles as these modes of transport are not commonly used for business purposes. Any self-employed persons who use these forms of transport for business purposes will need to calculate their actual expenditure or in the situation of an employer reimbursement, they may make a reasonable estimate of the employee’s costs."

But I'm not self employed, and so would normally just chuck in an expense claim for car travel and get 72c/km back. So about $300 for the trip to Akl return, which would be about $50 of diesel, plus the KM (hmm, that reminds me to check the k's on the sticker...:shutup: ).

On the bike then it's $30 of fuel. Just trying to see how to 'make a reasonable estimate' of my costs.

[Ocean1]

http://www.ird.govt.nz/technical-tax/op-statements/os-review-milage-rate-2016.html

"reimbursement of employees.

The mileage rate does not apply in respect of motor cycles, hybrid and/or electric motor vehicles as these modes of transport are not commonly used for business purposes. Any self-employed persons who use these forms of transport for business purposes will need to calculate their actual expenditure or in the situation of an employer reimbursement, they may make a reasonable estimate of the employee’s costs."

But I'm not self employed, and so would normally just chuck in an expense claim for car travel and get 72c/km back. So about $300 for the trip to Akl return, which would be about $50 of diesel, plus the KM (hmm, that reminds me to check the k's on the sticker...:shutup: ).

On the bike then it's $30 of fuel. Just trying to see how to 'make a reasonable estimate' of my costs.

Then you don't have to keep IRD happy. Just the boss.

So just add it up. It's not a lot different to a car anyway, especially once you've factored in the fucking registration costs.

[swbarnett]

Not sure if this is the right part of the forum (sorry mods if I got it wrong).

I use the bike for a lot of work trips. So far I've been just wearing the cost of the fuel myself. However, after the $1k on new tyres having run up 10,000km in the last 5 months, then I'm leaning towards claiming something back. IRD has rates for cars, but states that it isn't for motorbikes and the employer needs to calculate reasonable costs. Which leads me to ask if anyone else has done this, and if so how they did.
I just claim the same rate as a car. Nowhere in the form is the question asked as to type of vehicle. My employer is well aware I use the bike too.

On the flip side I don't always claim for short trips.

[caseye]

I just claim the same rate as a car. Nowhere in the form is the question asked as to type of vehicle. My employer is well aware I use the bike too.

On the flip side I don't always claim for short trips.

Yep, used to do a monthly run down the Coromandel, often used to take the bike, rock up to a client's place, walk in carrying helmet and gloves do the business and off again, they were bloody good about it and my employers were happy as pigs in shit,, got the job done, got more orders more often and did the whole thing in a day less, still got to spend time here and there and to charge out dinner with olds as legitimate expense in kind for accommodation.
It all works if you don't abuse the boss or the system.

[Duncan74]

Yep, used to do a monthly run down the Coromandel, often used to take the bike, rock up to a client's place, walk in carrying helmet and gloves do the business and off again, they were bloody good about it and my employers were happy as pigs in shit,, got the job done, got more orders more often and did the whole thing in a day less, still got to spend time here and there and to charge out dinner with olds as legitimate expense in kind for accommodation.
It all works if you don't abuse the boss or the system.

Yeah, in terms of keeping my employer sweet that is no issue at all on several fronts. And they were happy with the car mileage claim. However, I was (and still am) a wee bit scared of the IRD slapping me with a huge bill at the end of the year. More an 'oh no' than a 'woohoo', although to be fair I'd much rather and IRD debt recovery person arrive than that annoying twat in the too small blue suit and shitty mo......

Having thought about it, and when you factor in riding gear, 6000km service intervals, tyres every 10k and the $700 license compared to $200 for the truck, then it's about evens. Does however mean $200 a week less in akl Hotels as I get to ride up in the morning, not the night before for work.

[HenryDorsetCase]

this^

but to expand on it, you claim back as percentage of total costs (for everything not just fuel)

travel 1000km, 600 is for work, claim 60% the cost of tyres, rego, wof, fuel, infringements, snacks, safety gear......
a 3 month logbook is good for claiming that % for a couple of years IIRC, (if usage doesnt vary more than 15%) which if youre pedantic can claim a few more pennies.
(do high work km for 3 months, then 14% less but still claim the full amt)

that is quite true. except I dont think you can claim infringements. In that my accountant told me "You are fucking dreaming"
when I tried to. :(

[Ocean1]

that is quite true. except I dont think you can claim infringements. In that my accountant told me "You are fucking dreaming"
when I tried to. :(

The thing about CA's is that they don't work for you, they work for the IRD. You just pay them.

I'm culpably cavalier wrt vehicle costs. I allocate personal costs by the simple expediency of buying the vehicle, all other costs are paid by the company.

I used to have a record of costs that demonstrated that this arrangement more or less correctly represented the true cost allocation, but it's long gone.

In fact I'm probably on the losing side, personally. But there's a limit to the sheer quantity of fucking around I'm prepared to do in order to accommodate a bunch of anal retentive thieves with fucking huge entitlement complexes.

[HenryDorsetCase]

The thing about CA's is that they don't work for you, they work for the IRD. You just pay them.

I'm culpably cavalier wrt vehicle costs. I allocate personal costs by the simple expediency of buying the vehicle, all other costs are paid by the company.

I used to have a record of costs that demonstrated that this arrangement more or less correctly represented the true cost allocation, but it's long gone.

In fact I'm probably on the losing side, personally. But there's a limit to the sheer quantity of fucking around I'm prepared to do in order to accommodate a bunch of anal retentive thieves with fucking huge entitlement complexes.

LOL yup.

One of the downsides of not being self employed any more is there is no incentive to buy a new vehicle every three years. My current car is 3 1/2 years old and its fucked. Well I mean it needs a clean and the ashtrays are full.

[Duncan74]

Well I mean it needs a clean and the ashtrays are full.

I use a similar approach with servicing. My local Mitsi dealer charges $600 to clean it every 6 months and throw in a free oil change and top up the screen wash with liquid gold.

I had a phase of keeping on top of the cleaning. However, then they tracked down the mystery gremlin in the hands free electrics and told me I had to stop parking on their forecourt and they stopped washing it each week.

Cheers all.

[eldog]

LOL yup.

One of the downsides of not being self employed any more is there is no incentive to buy a new vehicle every three years. My current car is 3 1/2 years old and its fucked. Well I mean it needs a clean and the ashtrays are full.

You mean I get a new vehicle once it needs a clean and the ashtrays are full, it's well passed its third birthday. I can only ask. Might get a car (matchbox):bash:

[Virago]

that is quite true. except I dont think you can claim infringements. In that my accountant told me "You are fucking dreaming"
when I tried to. :(

I've only done it once. I put it in the book as "travel expenses" - my accountant just laughed and put it through.

[russd7]

had occasion to claim from an organisation i am tied up with, they have a tiered system for cars but on one occasion i needed to take the bike and as i was meeting the wife who had to take our car which is on the top tier i claimed that. it went through.
the justice system on the other hand pay a miserly $0.38c/km for travel for jury duty regardless of what type of vehicle you use. fucken criminals if ya ask me

[caspernz]

In my outfit we get $0.70 per km. Don't matter if we go on two or four wheels. And it's paid on odometer km we claim.