Inland Revenue has released its vehicle kilometre rates for the 2021 income year, and it’s not good news. ANALYSIS: Inland Revenue has just released its vehicle kilometre rates for the 2021 income year, and it’s not good news, particularly for employers who will need to quickly update mileage reimbursement systems for the new rates. The IR kilometre rates are relevant in the following circumstances:Working out the amount of vehicle expenses a self-employed businessperson can claim. Of course, self-employed people or employers are not required to use the IR kilometre rates, other methods are allowed, but the IR kilometre rates provide what is intended to be a simple, cost-effective method of calculating these amounts. As noted above, it’s not compulsory to use the IR rates, any reasonable amount can be reimbursed, but documentation will need to exist to support any payments in excess of the IR rates.

Source: Stuff June 08, 2021 03:52 UTC