Mileage reinbursement query...

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bazzer

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#581232 14-Feb-2012 10:23

Nety: A bit off topic but included in the insurance issue. Check your contents policy as well. If you are traveling with work and for instance take your personal camera with you most contents policy's will not cover the camera if it is lost/broken etc.
Back on topic my point with Wof etc. is that you are claiming per km. Wof costs the same amount if you travel 0km while it is valid or 30,000km. Therefore how can you claim a km cost for it? Same with insurance although I agree if you need to get additional cover or different cover then you should be reimbursed for that however I would see that as being separate to the mileage claim.

Just because it is a fixed cost doesn't mean it shouldn't be reimbursed, does it? If your car is used half for work/half for personal, it's only fair that half the fixed costs are reimbursed. Paying a per km rate is a proxy to paying the actual costs. That is why the 74c IRD rate is only valid up to 5000km, it shares the fixed costs out.

keewee01

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#581236 14-Feb-2012 10:40

Nety: A bit off topic but included in the insurance issue. Check your contents policy as well. If you are traveling with work and for instance take your personal camera with you most contents policy's will not cover the camera if it is lost/broken etc.
Back on topic my point with Wof etc. is that you are claiming per km. Wof costs the same amount if you travel 0km while it is valid or 30,000km. Therefore how can you claim a km cost for it? Same with insurance although I agree if you need to get additional cover or different cover then you should be reimbursed for that however I would see that as being separate to the mileage claim.

The thing is that the employer is saving on having to supply a vehicle or rental themselves - all of which would have WOF, Insurance, Servicing, etc built into the cost to the employer. Therefore they are costs which should be being taken into account IMO.

Nety

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#581238 14-Feb-2012 10:51

Fair points. I guess I was looking at if more from a occasional use perspective rather then a high use perspective as it appears the OP is.

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gzt

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#581240 14-Feb-2012 11:07

also the ird suggested rate is just a rate they consider an appropriate maximum and unlikely to require an audit

higher rates of tax free mileage payments than 0.74 are perfectly ok by them if costs are documented and available if/when required.

timmmay

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#581252 14-Feb-2012 11:28

Remember your employer has to cover what you're paid while you're driving, as you're not earning money in that time. That may or may not be relevant for your position. I see no problem with the charge rate to the customer and what you're paid being different.

The mileage rate shouldn't just cover petrol, it has to cover oil, tyres, and replacing the car once it wears out from all that driving you're doing for the benefit of the employer. For example if you drive 100,000km for work in two years I think it's reasonable that what you get paid for that mileage should cover petrol, oil, maintenance, and the cost of a new car as those 100,000km will really take its toll. At the standard 74c/km you'd get paid $74,000. Your costs are say $25,000 for petrol, $5000 for maintenance, $1000 for tyres, say $2500 for insurance, plus some for repairs. That leaves around $40,000 to leave you to buy a replacement vehicle due to all the miles you put on it wearing it out. That sounds reasonably generous, but not over the top. Paying half that rate would be far too low IMHO.

minimoke

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#581290 14-Feb-2012 13:07

Its pretty simple really.

What you and your employer agree is between the two of you. If you both agree you are to be paid 1 cent a km thats fine. If you both agree you get paid $10 a km thats equallly fine. If you don't agree with the rate you are being paid ask for a different rate. If you don't like the responce you have may think of your other options. If you have no options you're buggered.

What your employer charges his client is entirely between him and the client . No business of yours.

scuwp

3885 posts

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#581349 14-Feb-2012 14:10

minimoke: Its pretty simple really.

What you and your employer agree is between the two of you. If you both agree you are to be paid 1 cent a km thats fine. If you both agree you get paid $10 a km thats equallly fine. If you don't agree with the rate you are being paid ask for a different rate. If you don't like the responce you have may think of your other options. If you have no options you're buggered.

What your employer charges his client is entirely between him and the client . No business of yours.

My thoughts succinctly put.

The IRD and any other cost is a guide only, it comes down to individual agreement. The on-sell price the next person in the $$$ chain decides to charge is irrelevant to you.

If you are looking at data to check your rate the AA publish an annual car running costs report with a break-down of all the costs depending on car size. Free if your a member.

http://www.aa.co.nz/motoring/owning-a-car/petrolwatch/running-costs/

Lazy is such an ugly word, I prefer to call it selective participation

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