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At H&R Block, we specialise in getting a great tax outcome for our clients. If you’re an Uber driver, here are some key tax tips you need to be aware of.
The income you earn from driving for Uber is assessable income and must be reported in your income tax return.
Expenses incurred in driving for Uber will be tax deductible. These may include expenses that relate to holding, maintaining or operating any assets used to provide the ride services.
Deductions can be claimed for the business use proportion of the following:
There are two ways to claim a deduction for business use of your car:
As an Uber driver, the ATO sees you as self-employed. That means you have access to all the tax concessions available to small businesses, including the $30,000 instant asset write-off for capital assets which is available until 30 June 2020. That means you can immediately deduct the cost of any plant, tools or equipment you use in your business, including items such as computers and even motor vehicles provided the cost is less than $30,000 (very handy for Uber drivers buying new or second hand cars).
If you’re an Uber driver, you must register for GST with the ATO and charge GST on all your fares, from the first dollar. You can also claim GST credits on your work-related purchases. You will need to submit a BAS form every quarter.
Being registered for GST because of your Uber activity may impact on the GST status of other business activities you undertake. So, if you run a small business as a sole trader with a turnover of less than $75,000, you may have to start accounting for GST in relation to that business as well as your Uber driving.
If you need help or advice, please visit our office locator and find your local H&R Block office.
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