If you are an Uber Driver and looking for a tax accountant to get your Uber tax return completed, your search ends here. At A One Accountants we have prepared and lodged numerous Uber tax returns till date. We have below compiled a list of frequently asked questions from our current clients and attempted to make it as simple as possible to file your next uber tax return.
Are Uber drivers considered employees of Uber or independent contractors?
Uber drivers are considered as independent contractors of Uber since you are personally providing the ride sourcing services to your customers through the platform you have chosen. The importance placed on the word “YOU” above identifies you as the business owner, providing everything necessary to run the business efficiently and with an aim of making a profit. As a contractor, you are required to hold an active Australian Business Number (ABN).
Do Uber drivers need to be registered for GST?
It is mandatory for all Uber drivers to be registered for GST except for if you were providing services under Uber eats, the threshold of $75,000 applies.
My income was below $18,200 from Uber, do I need to lodge a tax return?
All residents holding a TFN need to lodge a tax return and same applies to Uber drivers too. .
What kind of car related expenses can I claim?
Uber drivers have the blessing of being able to claim a large portion of their car’s usage on the UBER tax return, based on your logbook records. Generally any expense that is related to your car and can be associated with you providing the UBER service is tax deductible.
What kind of expenses can be claimed on an UBER tax return?
Practically, Uber related tax returns are complex and have to be accurate and need to also match with the lodged Business Activity Statements since the data matching systems at the tax office integrates information from the bank as well as information received from Uber LLC directly to match with the income stated in your tax returns. Record keeping measures; such as maintaining a log book and receipts of expenses are essential since a variety of deductions are usually claimed in such tax returns.
Some Common Deductions UBER Tax Return:
- Depreciation on the car driven
- Cost of car rental
- Finance cost if the car was purchased on finance
- Cost of car maintenance such as repairs, insurance, registrations
- Licenses and fees
- Protective clothing
- Uber commissions and charges
- Other incidental costs incurred in the course of ride sharing activity.
bought a car in the financial year, could I use the $20,000; $25,000 or the
$30,000 accelerated depreciation on my UBER Tax Return?
This benefit applies to all small businesses and hence you should be eligible to claim too. The actual deduction would need to be pro-rated based on personal/business use of the car.
I borrowed money to buy the car I use for UBER? Can I claim the repayments?
The interest portion of the chattel mortgage would be deductible (Claimable), after this has been prorated based on the logbook provided. The principle portion of the repayment cannot be claimed.
What are the taxed an UBER driver needs to pay?
An UBER driver generally pays for GST and Income Tax.
We are here to assist you with your ride sharing UBER tax return and simplify this process for you. All you need to do is visit our online tax return form and submit your details. Give us a call today on 03 8609 1889 or email us on firstname.lastname@example.org and one of our friendly staff will be able to assist you with your queries.