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mattsheales
By mattsheales | AA Member | 2 Posts | 12 August 2011 at 10:39am

We are a new business running youth development programmes and need to work out how much to charge for running costs of transport. We transport children in an 11 seater 2001, Mitsi L300, 2.4 petrol, 5 dr LWB.The initial cost of the van was 7500, Registration costs 333.40 per year. General repairs and maintainence is roughly 1000 per year, insurance is roughly 600 per year. Thanks.

jbiddle
By jbiddle | Community Member | 1657 Posts | 12 August 2011 at 3:30pm

For the age and mileage of this vehicle you may be better to use the IRD mileage reimbursement rate which is currently 74 cents per kilometre, for up to 5,000 km of work-related travel per year.

For distances greater than 5,000 km, you must keep a record of actual vehicle expenses.

The official NZAA 2011 rate based on this engine size ( but covers ownership of a new vehicle for up to 5-years) is 78.1 cents per kilometre. These rates take into account vehicle depreciation which would be a lot higher than your L300.

Either way its pretty close whichever rate you choose.

mattsheales
By mattsheales | AA Member | 2 Posts | 13 August 2011 at 2:43pm

Thankyou very much for that. another question please......as we will be doing over 5000km per year does this mean we are better to leave the IRD rate and stick to claiming tax back??? cheers Matt

jbiddle
By jbiddle | Community Member | 1657 Posts | 16 August 2011 at 9:22am

I think you are better to ask your accountant this question to be honest.

If it helps, and based on the many phone calls we receive via our Motoring Advice line, there are a number of business people use either the IRD or AA's rates to claim reimbursement for their running costs.