If you are an Uber driver pay attention to these tax tips, you can get benefits from deductions you might not know about and avoid any trouble with the ATO.
1. Reporting income in your tax return
You need to report on your tax return the income you have earned driving for Uber in the financial year. Precent can help you lodging your tax return, please contact us.
2. Registering for GST
All Uber drivers are required to register for GST (Goods and Services Tax). That means you submit the GST portion of your Uber fares to the ATO. This is an addition to the tax you need to pay for the income you earn as a driver.
Once you register for GST you will start to lodge quarterly a BAS (Business Activity Statements) statement and pay GST obligations. If you don’t do this, you can have a trouble with the ATO and Uber is unlikely to help you out of your personal ATO troubles. Precent can help you to register for GST and lodging your BAS, contact us.
3. Deductions you can claim
- Costs of becoming an Uber driver, for example, registration, medical and police checks, application fees, etc.
- Commissions, licensing or services fees paid to Uber.
- Passenger costs such as water and mints
- Fuel for the car
- Tolls, parking
- Mobile phone bills
- Car maintenance
- Car cleaning costs
- Tax agent/accountants fee
4. Deductions you cannot claim
- Costs of normal drivers licences
- Fines (parking, speeding, etc.)
- Clothing other than safety clothing
- Meals or drinks purchased whilst on shift
- All the expenses not related to the Uber business activity
5. Claiming $20,000 instant asset write-off for capital assets
As a small business you have access to the $20,000 instant asset write-off for capital assets. For example, if you buy an asset and it costs less than $20,000, you can write off the business portion in your tax return for the relevant income year. This is very handy for Uber drivers buying second hand cars and has been extended to June 2019.
6. Keep track of your miles and expenses
You will need to keep a record for the business use of your car, so you can claim a deduction for the kilometres you have incurred doing the Uber service.
There are two methods to work out the business use of your car, a) Cents per kilometre and b) Logbook. Please check out our blog ‘How to claim tax deductions for work-related car expenses’ to know how to calculate your work-related car expenses with these two methods. Precent has a professional team that can help you calculating the deduction for the business use of your car, so please contact us.
Also, in order to claim the deductions above explained, keep all the receipts for the expenses you incur like parking or bridge tolls, mobile phone and internet usage, fuel, repairs, advertising costs, bank fees, stationery items, and so forth, but only if it’s work-related. We recommend you to take pictures of your receipts, as is a safe way to keep your information.
This information is a general guide for our clients. Precent can help you completing your tax return lodge, and calculating your work-related car expenses. Please contact us at [email protected], or call us to (+ 61) 2 8317 1281.