Driving an Uber give you flexibility to work anytime of the day, as long as you want. This flexibility has attracted many to people to the gig, whether as a casual or full-time driver. Unfortunately, all Australian residents are still required to declare all income earned from driving an Uber as part of their tax returns. There is no way around it even if you are not great at accounting. No matter how few hours you spend per week on the gig, ever dollar is considered as part of your assessable income. That said, there are a few ways to claim tax returns as part of your work-related expenses which most accountants will be familiar with.
If you recently became an Uber driver in the last financial year, you would have registered yourself as a Sole Trader and acquired an Australian Business Number (ABN). On top of your income from other business activities and/or your regular job, Uber drivers have to report any earnings from Uber as part of your taxable income. However, did you know that you also have to register for GST?
Another top tip to keep in mind is that your tax accountant’s fee can be claimed as a deduction for your tax returns. It is considered a rideshare related expense and we recommend all Uber drivers to take advantage of this deduction especially if you get stressed about business accounting at the end of each financial year.
Be a smart Sole Trader and Uber driver and get the accounting experts to help maximise your tax returns on your side hustle. Ezy Tax Online is a registered tax agent and our accountants are qualified professionals who can help you organise your tax returns while you are on the road earning more for the next financial year. Get started with us now or visit our Queensland office today to learn more!