Ruby Taxation and Accounting Services provides professional Business Advice and Taxation Services in Melbourne. Click the dropdown to see our array of services
Monthly Business Packages for small and medium sized-businesses.
These packages are applicable to businesses of most industries like retail, health food and hospitality etc.
Special package for UBER/TAXI drivers
The ATO regards ride-sourcing services like Uber as a taxi service, and while most small businesses need to cross the $75,000 annual income threshold before they are required to register for GST, this threshold does not apply to a business providing ‘taxi services’. As an Uber driver you must register for GST regardless of how much you earn from driving.
Be warned, if you drive casually to earn a bit of extra cash, you still need to declare any income you earn in your tax return. Of course, if you own or lease the car that you use for ride-sourcing services then you can claim expenses against the income.
Claiming Car Expenses
There are several options when claiming motor vehicle expenses including:
If you drive less than 5,000 kilometres for business purposes during the financial year you can claim a tax deduction based on a cents per kilometre basis. If you multiply the number of kilometres you travel for business purposes by 66 cents this will be your allowable deduction.
Alternatively, you can keep a log-book for 12 weeks during the year that documents the business use of your car for ride-sourcing activities. This will let you calculate the use for business purposes and you can claim that percentage of vehicle costs including depreciation (or lease payments), fuel, insurance, registration, tolls and repairs.
Your log book is a very important tax document and you must update your log book every five years. Your log book must record all business trips and include:
The dates the log book period begins and ends
The car’s odometer readings at the start and end of the period
The total kilometres travelled
The business percentage for the log book period
In addition, for each business journey in the log book, you must record:
Start and finishing times of the journey
Odometer readings at the start and end of the journey
All this can be quickly automated and regulated on to go with the use of Xero Software. Please ask us if you have any queries here