How to look after your taxes as an Uber driver
The main thing is that Uber drivers are contractors and not employees, which means tax is not taken out of your payments from Uber and you’re entirely responsible for paying your own taxes. But this process doesn’t have to be difficult, especially if you do some good planning and organisation, and get the right assistance.
How to look after your taxes as an Uber driver in Australia:
1. Open a new bank account that you will use only for Uber income and expenses. This is a smart and easy way to keep track of things.
2. Get an ABN.
3. Register for GST. You need to do this regardless of how much you’re earning. You will then need to pay GST on every fare you earn.
4. Sign up as a driver with Uber, and save a portion of money from each fare to pay your tax bill.
5. Lodge a Business Activity Statement (BAS) quarterly (but not annually). 6. Include all of your Uber income in your annual tax return, along with any relevant deductions.
Remember that you can only make deductions that directly relate to the service you’re providing as an Uber driver in Australia, so it’s important you keep careful records of all income and expenses. Expenses that might be relevant include fuel, car registration, insurance, cleaning, maintenance, repairs and charges paid to Uber. You can only deduct the business portion of the expense, so you’ll need to keep a detailed logbook to record how much you use your car for generating income and for personal use. The chances are you’ll need to pay your income tax by quarterly instalments so don’t wait until the end of the financial year to think about your income tax.
How H&R Block can help you
Having an experienced and knowledgeable tax agent on your side will make the whole experience (from starting out as an Uber driver to filing your BAS and tax return) so much easier and less stressful. To make it even better, H&R Block have partnered with Uber to offer Uber drivers in Australia a fantastic 15% discount on our already affordable Sole Trader Tax Return. This means help when you need it most, the peace of mind of knowing you’re ticking all the boxes with your taxes and, most importantly, more money in your pocket at the end of the day. Find out more about this great offer – and how to redeem it.