Although Solo is not specifically designed for the kilometre rate method, you can still use the kilometre rate method for claiming vehicle expenses in Solo.
When using the kilometre rate method there are a few things to be aware of:
You should still keep a logbook for 90 days to work out your business use percentage.
You cannot claim GST when using the km rate method (it's already factored into the rate).
You also cannot claim depreciation for the vehicle (it's also factored into the rate).
You will need to wait until the end of the financial year to claim vehicle expenses. This is because the IRD only publishes the rates for the current financial year at the end of the financial year.
If you decide to use this method you should use it for the entire time that you own the vehicle.
For the latest km rates and instructions on how to calculate the claimable amount please refer to our guide to claiming vehicle expenses.
How to claim kilometre rate expenses in Solo
Once you have calculated the claimable amount, then follow these instruction to enter the claimable amount into Solo:
Go to the Settings page in Solo
Set Vehicle business use to 100%.
Go the Expenses page.
Click the + icon at the top right of the screen to manually enter a transaction.
Enter a transaction date that is within the financial year you want to claim the expenses for. E.g. March 30.
Select Fuel as the category for the transaction.
Disable GST on the transaction (if you are GST registered)
Save the transaction.
Your vehicle expenses will now be included in Solo's tax calculations and your generated tax return.