Motor vehicle deductions is travel from home to work. New zealand is one of the most livable countries in the world. New mileage rate method announced generate accounting. If you use a vehicle for work, its a good idea to use inland revenues vehicle logbook template download this spreadsheet from the tool for business website. Whether you already have a vehicle that you use in the business that is not. Please note, if no logbook is kept, the use of tier one rates below is limited to the first 3,500kms. The other option is to calculate this on the basis of actual expenses. The vehicle log book is perhaps one of the most important tools for your vehicle maintenance. In creating mileage log, there will be basic information that you should include such as the employee id, name, title, department, vehicle id, and period of. Commissioners statement on using a kilometre rate for. All you have to do is tell it if it was a business or personal trip and it takes care of the rest.
Kilometre rates for business use of vehicles 20172018. Get our inland revenue logbook app on your phone today. This course covers work time, rest time, extensions, exemptions, offences, secondary employment and more. If you use you are self employed and use your private vehicle for business use, you can make a public service mileage claim. Any warranty related issues for a car can be successfully handled if you maintain a perfect log book for it.
However, for the 2020 income year and onwards it will be. The gps log book live vehicle and asset tracking device is an affordable, easy to install gps solution for private cars and company fleets. All prices on this site are goods and service tax gst inclusive. Worktime and logbook requirements waka kotahi nz transport. Mileage rates for business purposes aa new zealand. Travel by motor vehicle is in the course of performing work. You can work out the business use of your vehicle by keeping a logbook for at least 90 consecutive days. You can only claim half of some entertainment expenses, eg client coffees or meals. Section 215 of the goods and services tax act 1985. You can keep a logbook to find out how much you usually use the vehicle for business. Logbookme gets help from a handy little gps enabled device, which easily plugs into your car and sends the data in realtime from your vehicle to your logbookme account.
Tier two rates are to be used for the business portion of any business travel in excess of 14,000 kms. However, deductions for dualuse motor vehicles are also subject to special rules for income tax purposes. You can use this rate for up to a maximum of 5,000 km of workrelated travel. Its a good idea to use inland revenues vehicle logbook template download this spreadsheet from the tool for business. As the vehicle was rarely used for private purposes, he logged those times. The current rate is 77c per km and applies to both petrol and diesel engines. Motor vehicle deductions aug 27, 2018 motor vehicle expenses are generally deductible for income tax purposes, if the vehicle is used to help earn income for the business. Claiming business vehicle expenses what can you claim in nz. Whether you already have a vehicle that you use in the business that is not currently on the books, or purchase a new vehicle, nz. Gps log book live realtime online vehicle tracker and travel.
Access your trip logbook and other useful reports on any device using the website or smartphone apps. Add up the distance that was travelled for business and work out what proportion this is of the total distance the vehicle travelled. Fringe benefit tax calculation for close companies 18 jul 2017. If you use the vehicle strictly for business, you can claim the full running costs, without making any adjustments if you use. Marketed in partnership with and approved by vtnz you can monitor, track and control your fleet with confidence.
New zealand business performance panel other topics coming soon. The result was 3% private usage, so he lodged a vehicle expenses business claim for the difference. The new rules also allow companies to adopt the new kilometre rate for motor vehicles used for business. Log book entries must be made at the start and end of each travel journey. The video was produced by tdt victoria with the assistance of. If the business usage of your vehicle is less than 3,500 kms per year, you can continue to record the business kilometres in your log book as usual. To reflect the decline in real motoring costs over the past 20 years, the valuation rate on motor vehicle fringe benefits reduces from 24% to 20% of the vehicle s cost price. There are restrictions placed on how long the driver of a commercial or heavy motor vehicle may work before taking rest. This factsheet provides advice about work time and logbooks for transport operators and drivers and small passenger service drivers. In the absence of a log book or data to base the kilometre method on, 25% of running costs may be claimed so long as you can justify this.
There are exceptions to the rule where travel from home to work is deductible. Aug 21, 2018 if the business usage of your vehicle is less than 3,500 kms per year, you can continue to record the business kilometres in your log book as usual. Motor vehicle deductions is travel from home to work deductible. Worktime and logbook requirements read law changes regarding meal and rest breaks which came into force on 6 may 2019. The requirements and issues are different for each of the three methods of accounting for motor vehicle expenses for a primer on the different methods of handling motor vehicle expenses check out our earlier article pimping your ride. This video was put together to help drivers complete their work diary under the heavy vehicle national law hvnl. If a private vehicle is used for work purposes, a logbook should be kept which details business related travel. Inland revenue te tan i taake operational statement 1801. Vehicle logbook app for recording work trips taxtim na. Log book for full year one option for determining the business use proportion of a motor vehicle is for you to keep a record of all business trips made in the vehicle during the income year. Jan 21, 2019 claiming business vehicle expenses in your business is what everybody wants to do and simultaneously one of the trickiest calculations in your accounts. If you are using the mileage claim method then you need to keep an actual log of business mileage. The new rules also allow companies to adopt the new kilometre rate for motor vehicles used for business which are also available to shareholders for private use. These mileage rates are calculated on the average cost to run a motor vehicle.
Your employee will need a record showing their businessrelated use of the vehicle over the income year, such as a logbook. Collins vehicle log book, limp cover entries per page. Multiple logbook examples are given to help the student learn the correct way of filling out the logbook. Jul 03, 2019 tier one rates should be used for the business portion of the first 14,000 kms travelled by the vehicle in a year. This rate is up from the existing 73c mileage rate. Logbooks are important documents because they are used to record all relevant information pertaining to a vehicle and its competition history and they are an important scrutineering tool. It is a key document that ensures a perfect investment on your asset. Now you can keep your vehicle log book up to date with oneclick simplicity from taxtim. Once you have bought your vehicle, you need to decide whether you are going to claim all your expenses and use the logbook to determine.
Businesses must operate within the new zealand laws and regulations governing commercial activities and practices. Fbt seeks to tax all noncash benefits provided by an employer to an employee or shareholderemployee as a result of their employment, with the obligation to return the tax falling on the employer. Mileage log book free microsoft excel templates and. On 4 july 2018 inland revenue released its finalised operational statement 1801. Mar 30, 2006 to reflect the decline in real motoring costs over the past 20 years, the valuation rate on motor vehicle fringe benefits reduces from 24% to 20% of the vehicle s cost price. The ird approved mileage rate for motor vehicles is currently 72 cents per kilometre. This is written as a decimal so if 25% of your vehicles use is for business. Mary maintains a logbook where she records details of her business use of the vehicle. The ird are trying to minimise your claim and beany is trying to make sure it represents all the costs of your business use. However, deductions for dualuse motor vehicles are also. The ird rules have changed regarding companies from the 20172018 year. Records destination, odometer reading, kilometres for business and for private use.
You can currently claim up to 77cents per business kilometre. The gps log book will help you claim money from mileage. If you use something solely for business, you can usually claim the whole cost of the item. Inland revenue has also accepted the use of this mileage rate as a reasonable 1 tax alert. Sync online to output ird tax logbooks, employee travel claims, offroad ruc refund reports. Collins vehicle log book limp cover 40 pages officemax nz. It is compulsory for the owner of the vehicle to have a log book of the vehicle. The fringe benefit tax fbt rules are complex and often misunderstood by employers. With the mileage rate method a logbook must be kept for the entire period the vehicle. You must keep a log book to show dates of each trip, distance traveled and reasons for trip. Kia ora haere mai, welcome to the new zealand inland revenue website. Its the logbook app that youve been waiting for how would you like a vehicle logbook, which automatically records when your trip was taken, how far you went and where you went. You can also use the reports to make ird and nzta compliant mileage claims much easier.
Tim dove taxi impact auckland gps log book provides us with a way to quantifiably get. Once the person succeeds in proving his ownership, he becomes liable to register the vehicle and pay the tax. Simply plug the gps log book into your cars cigarette lighter and automatically record every trip. The company could use the proportion of business use of the vehicle by mary to apportion the motor vehicle expenditure. Under the income tax act there are strict rules for claiming motor vehicle. A log book or similar record showing for each business related journey the distance travelled. Jul 09, 2018 once the exercise is completed, make sure you store the log book safely for at least seven years. Record your trips on the go simply press start and l. In nearly all cases, travel between home and work is considered private use. If keeping a paper log book is not for you you may be interested in gps logbook which simply plugs into the cigarette lighter in your car. It is recommended that all vehicles have a logbook. A vehicle log book is a document which is used by many vehicle owners to prove their ownership. Kilometre rates for business use of vehicles 20172018 income year.
Vehicle logbook app for recording work travel our electronic logbook makes logging travel expenses for tax purposes easy. Motor vehicle expenditure of close companies tax policy. A person must determine the business use of a motor vehicle against the total kilometres travelled by that motor vehicle. In creating mileage log, there will be basic information that you should include such as the employee id, name, title, department, vehicle id, and period of time, rate, total mileage, and also total rate in usd. Prior to 20172018, you can only claim up to 5,000km travelled based on the ird mileage rate for the applicable year. This general purpose limp cover vehicle log book is suitable for most business use. Log book records are maintained for a period of 121 weeks in one year the logbook year and are valid for five years. Close companies that provide their shareholderemployees with a motor vehicle for private use are required to register and pay fbt on that benefit, with some exemptions. We also administer a number of social support programmes including child support, working for families tax credits, and best start. The other factor to consider is that the ird rate of 77c per km across all makes, models, ages and engine sizes is capped to 5,000km per year and requires keeping a log book, receipts etc.
Learn how to fill out a vehicle logbook to avoid fines, suspensions and demerit points. An application for a logbook can be made through motorsport online via the loginregister link at the top of this page using your personal user name and password watch the instructional video on applying for a logbook. Jun 10, 2016 motor vehicle deductions is travel from home to work deductible. We collect most of the revenue that the new zealand government needs to fund its programmes. Nov 19, 20 the requirements and issues are different for each of the three methods of accounting for motor vehicle expenses for a primer on the different methods of handling motor vehicle expenses check out our earlier article pimping your ride. Let your phone track your trips, and have your ato compliant mileage documentation ready for handover at any time. If you see an instalment arrangement suddenly showing in your myir for your working for families, this is a known issue and we are working on having this resolved as soon as possible. Were all about using our technology to deliver more relevant data to our customers that is easily collected, easily understood and with useful, actionable insights. Inland revenue have announced the new method for claiming mileage. You can download a free logbook template from the ird website.
Mar 04, 2014 the gps log book will help you easily create a tax log book for claiming vehicle expenses on your ird tax return. Sync online to output ird tax logbooks, employee travel claims, offroad ruc refund reports rucor and a host of other data exports. The inland revenue department has strict rules which exclude the deduction of travel that is deemed to be from home to work. It is compulsory for the owner of the vehicle to have a log book of the vehicle maintained. Personally, id be more than happy with 62c per km on your car as. The purpose is both to gain more organized mileage log but also to prevent any misuse of your business fleet. Refer paragraph 19 which explains the use of log books 2. It is, in reality, proof of your vehicle condition.
For income tax purposes, a person may keep a logbook. There are two options available to ensure that all motor vehicle expenses are claimed. However the following vehicles must have a valid logbook. Use our kilometre rates to calculate the deduction for costs and.
Some good news is that privately owned companies can now pay less tax on their new evs and also ice vehicles by adopting a cost apportionment treatment using a log book. The good news is that for the remainder of the 2019 income year, i. Tier one rates should be used for the business portion of the first 14,000 kms travelled by the vehicle in a year. A motor vehicle is an asset that, if it is used for private and business purposes, is subject to the gst apportionment rules. Kilometre rates for business use of vehicles 20182019. More information is available on the methods from the inland revenue department site here. Once the exercise is completed, make sure you store the log book safely for at least seven years. Tax payment deadline automatically extended by three months. The aa rates have less constraints as we have calculated them out to be quite accurate. Kilometre rates must be used in conjunction with a log book which must be kept for a period of 3 months, every 3 years.
The gps log book will help you easily create a tax log book for claiming vehicle expenses on your ird tax return. Inland revenue homepage contact us copyright 2019 inland revenue. Watch the demo video below or find out more about the device and installation. Use of a motor vehicle for business purposes small business. An entire fleet of vehicles can be tracked on a single user account. Logbook and worktime training course for heavy vehicle. Included are basic guides to work time and rest time requirements and logbook standards. Kiwitax vehicle log books available free to clients. However, for the time being, evs are subject to the usual rules, if the vehicle is available for private use by employees or shareholderemployees. The ird mileage rate is ideal for when you are only using your vehicle for business use occasionally. To address the growing need to manage vehicles, fleets and assets online, vtnz proudly presents the gps log book gps live track range of trip loggers, vehicle trackers and asset locators to help you introduce driver safety and asset security, while improving operational efficiency.