Company Motor Vehicles - Latest FBT Changes

When a Company vehicle is available for private use
it is subject to Fringe Benefit Tax (FBT). FBT is
calculated on 20% of the original cost of the vehicle
with the FBT tax rate generally being 49.25%.

From 1 April 2017 the IRD has modified the rules so that when a close Company purchases a vehicle they have the option to keep a log book and claim vehicle expenses based on an apportionment of business/private use. Certain rules apply here:
• This method can only be used when the only (fringe) benefits supplied by the Company is at maximum 2 vehicles to shareholder-employees. This means that if other fringe benefits are provided to employees or vehicles are provided to non shareholders this method cannot be used.
• The vehicle must be purchased after 1 April 2017 to use the new rules.
• A vehicle log book must be kept for a minimum of 90 days, once every 3 years to determine the business portion of expenses.

Wednesday, 8th November 2017

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"BC Contracting has been with DB Chartered now for a few years, and our experience has been amazing throughout.

I love how thorough the team is and that if something may have been missed or an error is made somewhere on our behalf the team are very quick to inform us so any adjustments can be made.

Every financial year I feel like so much pressure and weight is lifted off our shoulders due to the great team in the office, especially with the communication we have with the staff who have supported us from the moment we started our business.

All of the communication is top notch and I could not ask for a better service provider. We can trust that our company is in great hands and that all of our finances are taken care of by a team we can rely on.

If you are looking for great service with a great team I would look no further then DB Chartered."

Michelle Stevens
Director
BC CONTRACTING