The Motor Vehicle Reimbursement rate changes for each financial year. However, the IRD has not been able to release the new rate due to Covid-19 delays. The IRD has advised using the 2019/2020 rates for the current year onwards. And any adjustments can be made at year-end if needed. For the first 14,000 km of travel claimed, the rate is 79 cents per km. For any km travelled over 14,000 km, the rate is different for different vehicle types; for petrol vehicles, the rate is 30 cents per km. More from the IRD on Motor Vehicle Reimbursements can be read here: https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/claiming-vehicle-expenses/kilometre-rates-2019-2020-to-current-income-year.
This is a complex area and you can be sure that for all our Beany clients, we will check that you have claimed the correct amount. Please reach out to email@example.com for more information. We're here to help.