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McLEAN AND CO.
Keeping a Vehicle Log Book
Records you Need to Keep Relating to Employees
Employees Opting into Kiwisaver
We have noted cases where processing is not correct in relation to the above.
If you utilise the services of persons/ firms who are in business in their own right (and thus are responsible to pay their own ACC Levies) and you deduct Withholding Payments from these entities and therefore have to pay this to IRD in your PAYE Schedules the following month, you should complete Employer Monthly Schedules as follows:
We have noted cases where only the figures are processed to the column "Gross Earnings and/ or Withholding Payments". In such cases you will be charged for ACC Levies in relation to these Earnings.
A vehicle logbook is a record of:
A vehicle logbook must be kept for each individual motor vehicle to work out the amount of business use as opposed to the amount of private use per vehicle. This percentage is then the basis on which to claim a set percentage of all motor vehicle expenses against your business income when calculating the business profit.
The vehicle logbook must be kept for at least three months every three years to work out the business share of the running costs. You can use the result of your three months’ recording to claim the business share of your vehicle expenses over the next three years, provided your business use of the vehicle doesn’t change by more than 20%.
You should still keep records of the total vehicle running costs and record the total distance travelled for the income tax year.
If you don’t keep a vehicle logbook you may claim up to 25% of the vehicle running costs as a business expense. However you could be asked by Inland Revenue to substantiate the percentage claimed.
Remember, you need to be diligent when recording what is business use and what is private. Inland Revenue have determined that in normal circumstances travel between home and work is private.
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