Charging at home
Running costs for en Electric Vehicle can either be claimed by uploading actual expenses as they are incurred (e.g. charging receipt) or my using the Mileage method.
If using the Mileage method, you will need to use the below rates as set by IRD.
The 'Tier One' rate is a combination of your vehicle's fixed and running costs. Use the Tier One rate for the business portion of the first 14,000 kilometres travelled by the vehicle in a year. This includes private use travel.
The 'Tier Two' rate is for running costs only. Use the Tier Two rate for the business portion of any travel over 14,000 kms in a year.
You will need to , such as a logbook. You then use it to calculate the exempt portion of reimbursement using the kilometre rates set by IRD. For example, use the Tier One rate for the business portion of the first 14,000 kms (total) travelled by the vehicle in the income year, and then the Tier Two rates after that.
You will need to keep a log book (or equivalent) for a minimum of three months, showing your business-related use of the vehicle over the income year, making sure 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.
Once you have calculated the business proportion you can choose to use kilometre rates to calculate the amount of allowable expense for the cost of using your motor vehicle for business purposes. You can do this by using the following calculation:
kilometre rate x kilometres travelled x business proportion
- kilometre rate is one of the rates below
- kilometres travelled is the total number of kilometres travelled for business and personal purposes
- business proportion is calculated, using actual records or the logbook method, as a decimal.
In the Expense section of your dashboard, you need to raise this under the "Mileage" category, making sure to state the number of kms you are claiming in the Expense Description and mention that you are claiming for an Electric Vehicle.
Make sure you have calculated the amount claimable based on the above calculation and rates.
- Mileage costs do not include GST so make sure you raise these correctly
Once you have maintained a log book for a few months, you may wish to switch to claiming a percentage of each Motor Vehicle expense rather than continuing to maintain a log book and claiming mileage, but it is completely up to you.