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thomas
By thomas | AA Member | 2 Posts | 23 July 2015 at 10:00am

hi there
An employee of mine has a Toyota hi ace van.. He paid about $4000 for it is a 2001. Runs fine - but just not pretty
From time to time when he is traveling to or from work we get him to deliver stuff to our customers etc. - he gets paid for the traveling time.
We want to know how much we should pay him for the use of this vehicle - cents per kilometre
Can you make some suggestions please for our conversation
Tom

Anon
By Cade | AA Expert | 3937 Posts | 23 July 2015 at 10:51am

Hi there,
Running costs are made up of two parts, fixed and flexible costs.
Fixed costs made up of insurance, licensing, wof, insurance ect.
Total running cost reimbursment could be based on IRD rates of 77 cents per km.
Or if you want to just pay for fuel/ maintainance/ wear n tear costs (flexible) then
you could look at 30 cents per km.