The ATO has been on top of the situation to avoid letting Uber drivers slip away without paying their taxes. This goes for not only drivers of Uber, but also any ride sharing arrangement or companies like Go catch, Lyft, etc. We have compiled a list of points that each ride-sharing driver should be weary of. This is because you might be making your earnings as you go and in your own time, but the tax amount needs to be paid and the file needs to be attended to before the end of the financial year.
Additionally, the ATO has compelled all the banks to provide the details of payments made by their customers to such ride-sharing drivers. This calls for quick action if you’ve been intentionally or unintentionally been dodging the tax man.
When you work with a company like Uber, you are not titled as their employee. This is also why on registration websites you will be referred to as a delivery partner. It basically means that you are working on a contract basis and your payments are made to your ABN account rather than your TFN account.
Here is a list of fundamentals that you need to know:
- As a self-employed driver, you are required to report by means of Business Activity Statements (BAS)
- It is mandatory to get yourself registered for an ABN (Australian Business Number). You will be asked this number while registering to partner with such an organisation
- You are required to pay forward a GST amount for every trip you make. You will need to register for this
- Any income that you make by transporting passengers is considered as your income from the trips. And this should be declared in your tax return
There is a list of expenses that can be claimed for:
- Bank fees
- Tax agent fees
- Cost of registering as a driver
- Mobile phone costs (work-related costs only)
- Refreshments which are provided to passengers
- And so on (please get in touch with us to know the proper details)
Becoming an Uber driver is a great flexible way of making some side income or could serve as your main income. In either case, we encourage you to have a good look at your tax obligations before it becomes a bigger obstacle.