If you sign up and become an Uber driver you automatically have started a small business which means you now have tax and record keeping obligations.
You will need to have an ABN, be registered for GST (the usual $75,000 turnover threshold does not apply to ride share drivers) and lastly you need to do a quarterly BAS (Business Activity Statement) which reports the GST you collect from your clients and the GST you have already paid on relating Business expenses.
What you will need for your Tax Return & BAS:
- 12-week logbook for your vehicle (find a copy through our CES Bookkeeping app)
- 4-week logbook for your mobile phone (Free copy available inside your Gotax Account)
- Weekly fare breakdowns including GST (downloaded from Uber)
- The following expenses:
- Motor vehicle expenses ( fuel, repairs, maintenance, rego, insurance)
- Uber Commission Cost
- Tolls and Parking Fees
- Drivers Authority Fee
- Insurance ( public liability)
- Materials and Supplies
- Mobile Phone Cost
- Postage & Stationery cost
- Other Tools and Equipment
Rideshare Cashbook is the perfect record keeping option for Rideshare drivers. Integrated app and web-based system to record transactions as they occur, complete your BAS with a couple of clicks, give your Accountant access for a seamless Tax & BAS process, Rideshare income entry point to make data entry easy.
To ensure you keep up with your GST liabilities, you will need to lodge your BAS quarterly, this will then be sent to the ATO. So, make sure you put 10% of everything you receive from your Uber aside to cover your GST liabilities.
In addition to this, you are running your own business and working for yourself, therefore, you don’t have an employer withholding tax from your income, so you will need to set aside tax to cover this liability at tax time.
Need assistance navigating the tricky stuff? Set up a business consult with one of our small business tax accountants today. Call us on (07) 3881 0942.