Payment to employers for use of private vehicle

 

Questions asked to the IRD QB 10/11, is regarding reimbursing shareholder - employees for the private use of their motor vehicle.¹ Payment made by an employer for expenditure incurred by an employee is called expenditure on account of an an employee.² This is an exempt income for the employee.³ Share-holders employees of a close company with no PAYE INCOME can receive re-imbursements for the use their private vehicle.⁴ The mileage rate set by the commissioner is one option calculating this expense to be reimbursed.⁴

1. https://www.taxtechnical.ird.govt.nz/en/questions-we-ve-been-asked/2010/qb-1001-reimbursing-shareholder-employees-for-motor-vehicle-expenses-and-the-use-of-the-commissioner

2.https://www.legislation.govt.nz/act/public/2007/0097/latest/DLM1512790.html#DLM1512790

3.https://www.legislation.govt.nz/act/public/2007/0097/latest/DLM1513183.html

4. https://www.taxtechnical.ird.govt.nz/en/operational-statements/os-0901-commissioner-s-statement-of-a-mileage-rate-for-expenditure-incurred-for-the-business-use-of-