Tax Return Tips for Uber Driver Partners
GST and Tax Return Deductions for Uber Drivers
If you are an Uber Driver Partner, it is likely that you are considered to be an independent contractor within your role. This means that you may be able to claim certain business-related deductions on your tax return this year, such as work expenses, asset deductions and GST. At MAS Tax Accountants, we have experience working with independent contractors’ tax return commitments, and can help you organise, lodge and maximise your return. We have complied a quick checklist of GST and Tax Return Deductions for Uber Drivers that you may be eligible to claim, and provide you with a hassle-free Tax Season.
As the popularity of the Uber App increases, so does the demand for Uber Drivers. As an Uber Driver Partner, you have the flexibility to operate as an independent contractor, choosing to work whenever and wherever you’re available. This can give you the opportunity to not only fit your job into your lifestyle, but increase the tax benefits of your tax return.
You may be able to claim more than you think this Tax Season. To help you to get the best from your tax return, here are our GST and Tax Return Deductions for Uber Drivers Tips:
Claiming GST
As an Uber Driver, you are not an employee, but a contractor. So you will need to apply for an ABN and register for GST. In Australia, the Goods and Services Tax (GST) is set at 10 per cent, and is charged to the customer. This means that you will be charging your customers 10 per cent GST, as well as being charged 10 per cent GST on the items that you purchase.
By registering for GST, you may be able to claim tax deductions on some of the GST you have paid on work-related expenses, such as fuel, servicing and insurance. You will need to keep a record of your business purchases and included GST charges, such as receipts and invoices, as supporting documentation. You should keep a well organised record system, either paper or electronic, and ensure that it is up-to-date and easily accessible. It is essential that you have the proof of purchase and supporting records to be able to claim back some of your paid GST. If you don’t and the ATO questions your tax return claims, you may be heavily penalised and face a fine, as well as additional fees.
To apply for GST or know what amount of paid GST on work-related expenses you can claim on your tax return, it is advised that you speak to your local MAS Tax Accountant.
Small Business Asset Write-Off
The Small Business Asset Write-Off has been extended to June 2019, allowing Small Businesses and Independent Contractors are able to claim tax deduction for all business-related assets valued under $20,000, excluding GST. This could cover a wide range of business purchases, from computer equipment and printers, to a coffee machine for the staff kitchen and new office furniture.
As an Uber Driver, the most tempting purchase to make under this tax break is a new vehicle. However, to be able claim the asset deduction, it will need to be under the threshold amount of $20,000. If it is over the threshold, you may only be able to claim parts of the purchase over time. The car itself doesn’t qualify, you can still claim any extras for the car, such as equipment to maintain the car, new tyres or essential accessories. But don’t be fooled by the tax break’s generous manner – you can only claim the purchase back on tax if you already had the intentions or requirements to make the purchase for your business.
Please seek professional tax advice to see if the small business asset write-off applies to you.
Need for information? Find out your income tax reporting responsibilities and other possible tax deductions as an Uber Driver. Includes a downloadable Vehicle Logbook – Tax Return Tips for Uber Drivers
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Sources:
UBER, Domenic. (2015, 22 June). Tax Tips for Uber Driver Partners. Uber Newsroom. Retrieved from: https://newsroom.uber.com/australia/oztaxtips/
UBER, Domenic. (2015, 29 June). GST Factsheet for Uber Driver Partners. Uber Newsroom. Retrieved from: https://newsroom.uber.com/australia/gst/
