As an employer if you make a vehicle available to an employee (and their associated persons) or a shareholder employee to use privately, you must pay Fringe Benefit Tax (FBT).

A common misconception is that you only have to pay FBT on a motor vehicle if an employee uses it privately.
The reality is that as long as a motor vehicle is available for private use, FBT is payable, whether they actually use it or not.

Word on the street is that Inland Revenue are cracking down on business vehicle use and FBT.

Inland Revenue staff have been knocking on doors and parking outside supermarkets and schools, checking the use of business vehicles.

If you are contacted by Inland Revenue regarding your business vehicle, please refer them to us, as your tax agent.

If you are unsure if your business vehicle falls under the FBT rules, or would like to discuss your situation, please contact us.