If you are Uber driver or having income from other similar ride-sharing activity, then your income is taxable. It is important to know your tax obligations as Uber driver or for other such digital platforms. You must have an ABN (Australian Business Number) and have GST (Goods and Services Tax) registration. Uber drivers are considered as self-employed individuals and need to pay the GST every quarter as well as income tax on your income earned from Uber or other such ride-sharing platforms.

The ATO also allows Uber drivers to claim expenses that you incur are directly related to earning assessable income such as but not limited to the following:

–        Car registration & insurance

–        Repairs & maintenance

–        Car cleaning costs

–        Fuel

–        Car lease payments

–        Depreciation of the car in use

–        Lollies, water, mints, masks and sanitisers that you provide to the passenger

–        Driver accreditation, application fees, police checks and medical tests

Calculating GST and preparing tax returns must be accurate and supported by records of payments as the ATO’s data matching system is designed to track information from banks and ride sharing platforms. Records such as log books, proof of payments are vital as there is a wide range of expenses that Uber drivers claim. If you are an Uber driver or looking to become one or if you have outstanding business activity statements to be lodged, a little bit of preparation can bring resolution.

We have experience preparing many ridesharing tax returns and business activity statements and can help you bring all your outstanding lodgements up to date and advise you on your tax situation. Give us a call on 0452214559 and we shall assist you.