Ask an expert


Aline

Hi there, I have a 2000 Honda Avancier V6 and have been asked to detour on my way to my depot to the main depot to pick up work.
I have to get off at Motorway ramp 13 Onehunga travel to Fairfax Ave, Penrose then back onto the Neilson St onramp to carry on south to Ha Cres in Wiri and then do the same trip back except I have to get onto the north-western via hillsbourgh Road.
I have been trying to work out what the mileage is as IRD say 77cents and work were saying 50cents.
What is the mileage rate and how do i work out the km's for that trip?

ABayliss

The IRD use an average of all the AA rates (as we calculate for many different classes of vehicle).
However, our calculations are done on vehicles at 3 to 5 years of age where vehicle values are high and the biggest single component is depreciation. On a 15 year old car, the value is low so depreciation is minimal, therefore the true running cost will be much lower than a newer vehicle.
While the IRD rate is 77c per km, there are strict stipulations that must be adhered to for tax reasons such as keeping a log book, maximum mileage of 5,000km per annum and then keeping all receipts.
In any negotiation between employers and employees, there is an element of trust but the rate can be whatever the two parties agree. In reality, 50c per km on a 15 year old car probably more than compensates you for the true running cost of your car, so it seems quite a fair rate.
As for the mileage difference between the route you normally take and the extended route, I suggest you set your trip meter to zero before leaving home. Do this for the normal trip you take and the extended trip. The difference between the two distances will be the amount you will claim from your employer.