Kilometre rates for the business use of vehicles for the 2022 income year
Kilometre rates for the business use of vehicles for the 2022 income year is now 0.83 cents for petrol or diesel, hybrid and electric cars.
The rates set out below apply for the 2021/2022 income year for business motor vehicle expenditure claims. The tier one rates reflect an overall increase in vehicle running costs largely due to fuel costs. The table of rates for the 2022 income year: The Tier Two rate is for running costs only. Use the Tier Two rate for the business portion of any travel over 14,000 kms in a year.
| Vehicle Type | Tier One rate | Tier Two rate |
| Petrol or diesel | 83 cents | 31 cents |
| Petrol hybrid | 83 cents | 18 cents |
| Electric | 83 cents | 10 cents |
*The above article is a high-level explanation of the methods of calculation, and there may be other technicalities/rules that are applicable. The complexity of the calculations can also vary. Please reach out to us if you have specific questions regarding your situation.
Please note that the above does not constitute specific tax advice and only intends to be a general advice. If you require specific advice related to your situation, please reach out to our tax consultant using the ‘contact us’ option.
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