Mileage Rates for 2017

The IRD has announced that the mileage rate has reduced to 73 cents per kilometre for the 2017 income year. This applies to petrol, diesel and hybrid vehicles.

The rate for electric vehicles is 81 cents per kilometre.

This rate can be used when reimbursing employees for their work related travel (including shareholder employees). Note that home to work travel is not considered work related.

For Self Employed people this rate can be used for up to a maximum of 5,000 kms of work-related travel per year. If there will be more than 5,000 kms traveled, you must keep a record of the actual vehicle expenses incurred.

You do not have to use Inland Revenue’s mileage rate. You may choose to record actual costs or you may use the motor vehicle running cost data published by other reputable sources (e.g. NZAA).

Tuesday, 13th June 2017


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"As a real estate salesperson operating in Hamilton, I have found it vital to have a great accountant. Not content with selling just the occasional property, I have been single-minded about operating an efficient, healthy and growing business. This has meant performing at high levels while providing outstanding service to every client. To help me achieve this, I have invested in building a team of support staff, which currently consists of two staff members in selling roles and one in administration. We see DB Chartered Accountants as an integral part of our team as they are a “one stop shop” looking after all the book-keeping aspects of the business.

DB Chartered Accountants take care of all my tax and reporting requirements, from GST, KiwiSaver contributions and PAYE to end of year books and taxation advice. A lot of my business growth now revolves around time management. By working with DB Chartered Accountants my time input into the accounting side of the business is now negligible, leaving me free to work on my core business rather than be bogged down by the “red tape” aspects.

Pam from DB Chartered Accountants has looked after my accounts for several years now. Previously I had been through three other accountants in the space of two years. I was disappointed by the level of service provided by these firms and after missing deadlines for payments to IRD and dealing with the ensuing penalties, as well as being charged over-zealous fees, I felt very uneasy that nobody was overseeing my needs. I needed better assistance. After leaving the last of these firms, I was referred to what is now DB Chartered Accountants as they were trustworthy and reliable. This could not have been more accurate.

Fortunately my previous experiences are behind me and I now get a courteous reminder from Pam when a deadline is looming and action is required – and I no longer fear unjustified bills arriving in the letter box from my accountant. I enjoy working with the firm and am known by name by most of the staff which gives me confidence that I am being properly looked after. I appreciate being able to pick up the phone and call when I have questions. I would recommend working with DB Chartered Accountants without hesitation."

 
Vaughan Heslop,
Lodge Real Estate MREINZ
REINZ Top 10 Regional Salesperson Award Winner
Waikato/Bay of Plenty/Taupo Districts
 
 
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