The Inland Revenue have recently made some changes to the calculation for reimbursing employees (which can inlcude owners) of small businesses for vehicle costs relating to business travel.
Details on the new rules can be found here
In essence the rules have been expanded to cover more than 5,000 kilometres per annum. The new rate for up to 14,000 kilomteres per annum is 76 cents and after that it is 26 cents for Petrol or Diesel vehicles, 18 cents for Petrol/Electric Hybrids and 9 cents for Electric Vehicles.
In many cases you could be better off claiming the Kilometre rates compared with claiming deperciation and running costs.
Now the problem with this method is working out how many kilometres you do for business purposes, this is where some technology can help. Either an APP on your smartphone or a plug in or installed GPS tracking device in your car can really simplify this task. There are a lot of solutions available for this and they can be very inexpensive. There are other benefits to having GPS tracking too including security, monitoring where your kids are going in your car, and being able to work out more economical routes.
To discuss the new rules or best method for you then please contact us.