The tax benefits of being an Uber driver
There is a range of tax deductions you can claim as an Uber driver. Here are just a few work-related expenses that become tax-deductible when you drive for Uber:
- Car maintenance
- Car cleaning costs
- Fuel oil and other liquids costs to run your car
Your Uber car is your day to day use car which is why only a Percentage of the Costs of running the car are Tax Deductible.
All of your costs above will be determined by the % of business usage determined by the 12-week log book method.
For GST purposes, ALL of your fuel receipts are accounted for during the year as running Costs including GST and then allocated taking up the difference either quarterly or annually.
Rapid Entry suggests using a Portable GST Logbook for the whole year. http://usb.gpslogbook.com.au/PublicPages/Product.aspx#device $126 (not affiliated)
We’ve confirmed with the ATO that using this device all year round will give you the best 12 week % which you’ll be applying to your expenses for GST and Tax deductions.
Otherwise, do it the hard way and register each trip (each and every single trip, work related, Uber-related, dropping the kids to soccer practice, everything) for 12 weeks. (No thanks!!!).
Along with these expenses, you can claim additional costs that are directly related to becoming and operating as an Uber driver, such as:
- Costs of registering as an Uber driver (application fees, medical and police checks etc.)
- Work-related parking expenses
- Cleaning costs (car washes etc.)
- Mobile phone costs (more about claiming work-related phone later)
- Home Office
BAS LODGEMENT FOR UBER DRIVERS $49
TAX RETURNS FOR UBER DRIVERS WHO ALSO HAVE A FULLTIME JOB $131
(No Investments, No rental properties, No Capital Gains sales)