You can claim vehicle maintenance costs specifically related to your line of work (i.e. if you use your own vehicle for business you can claim a portion of the expenses you incur for running costs)
- Car insurance
Enter the full cost of the bill and select the amount you are wanting to claim from the drop-down menu (defaulted to 25%). The system will automatically calculate the claimable amount for you.
NB: Any costs incurred for travel between home and work is not classified as business use and cannot be claimed.
- You cannot claim for both running costs (petrol etc) AND mileage, it's an either/or situation
- If you use the vehicle strictly for business, you can deduct the full running costs (i.e 100%) without making any adjustment.
- If you don’t keep a vehicle logbook and you use the vehicle for both business and personal use then you may only claim up to 25% of all vehicle running costs as a business expense.
- If you wish to claim more than 25% you must keep a logbook for at least three months every three years. You will need to record the distance, date and reason for the trip in the logbook. You can use the difference between the odometer readings at the start and end of the three months to work out the percentage of vehicle expenses you can claim. Check out this link for a logbook template.
- If using a logbook and claiming greater than 25% then you must accept the disclaimer that you are maintaining a logbook so this information can be provided to IRD if queried.
- IRD may ask you to justify the amount or percentage claimed so be careful what you claim