Tax guideline for Uber drivers
At Tax Purpose, we specialize in providing comprehensive Bookkeeping and Taxation services to our clients for various industries.
We have many success stories of assisting Uber drivers in setting up their ABN and GST registration and providing BAS and TAX Return services. Our duty is to get all Uber drivers to pay lowest possible tax by complying with Australian Taxation Office (ATO) laws. The article here focuses on a Tax guideline for Uber drivers.
Reportable income for Uber Drives: Any money earned by driving an Uber which is providing commercial value in return of your services must be declared during Tax return.
Do not try to hide your Uber income as the ATO has launched a data-matching program for all “ride-sourcing” drivers which includes Uber. That data-matching program analyses data from financial institutions and identify drivers that earn income from driving for Uber and similar services.
GST rule for Uber Drivers:Each Uber driver must register for GST (irrespective of their income) with the ATO and charge GST on their fares from the first dollar. Uber drivers must submit BAS every quarter.
Work related Deductions for Uber Drivers: There are various tax deductions whichUber drivers can claim during their Tax return. Only condition is these expenses must have occurred in driving for Uber or related to its assets. for example;
- Expenses related to registration with Uber includes application fees, Medical and Police check
- Passengers cost such as water or Lollies etc.
- A Proportion of the fuel for the car
- Expenses to maintain the car such as cleaning, servicing and repairing
- Parking and tolls
- Insurance
- Mobile phone usage
- Safety clothes expenses
- Bank Fees only if account exclusively been used for Uber related income and expenses
- Tax agent fees paid for previous year Tax lodgement
Important: To claim any of the above deductions, it is compulsory to maintain record for your all Uber related expenses.
Above is a generalTax guideline for Uber drivers, it may vary case by case. Consult our Tax Agent at Tax Purpose to get your personalised Uber related help or advice.
