Mileage Rates 2021-2022

Inland Revenue recently advised mileage rates able to be used for calculating claims for business use of motor vehicles. The Commissioner is obliged to advise these annually, and the rates may be used to estimate the cost of expenditure of vehicles used in business, including private vehicle use by employees. This is an alternative to claiming the actual costs, which may be more difficult to calculate and maintain.

The new rates (compared to the 2020/2021 rates) are shown in the table below. Their application is the same: different vehicle types have different rates and the Tier One rate is only available for the first 14,000 KMs driven in the vehicle for the year—whether private or for business. Tier Two is for all subsequent mileage.

If you have questions on applying these rates or making motor vehicle claims, please contact us.