ATO COMPLIANCES FOR RIDE SHARE – UBER/OLA/ DIDI – DRIVER

RIDE SHARE – UBER/OLA/ DIDI – DRIVERS

Ride-sourcing, which is also known as ride-sharing, is an ongoing arrangement where a driver make a car available for public hire for passengers, using a third-party digital platform for payment (a fare). Rideshare driving has become very popular these days. Driver for a rideshare company is independent, and they are categorized as self-employed. Accounting for self-employed can be very difficult when it comes to taxes, if proper records are not maintained. Rideshare companies do not withhold any taxes and rideshare drivers are responsible for own tax obligations.

If you are a Rideshare Driver and looking to minimize self-employment taxes, we are here to guide you. You should have an Australian Business Number (ABN) and be registered for GST to work as a rideshare driver. You have to file your BAS return every quarterly and pay the GST amount collected during the quarter to ATO within the due date. Money earned from Uber/Ola/Didi is treated as income and should be included in your tax return. You should be very careful about the information included in your BAS and Tax return. There may be risk that the expenses that you claim in annual tax return may not be eligible for deduction or also there may be possibility that the expenses you are eligible to claim may be omitted. ATO can raise issues and you can be investigated. You should be very careful while declaring the income from rideshare in the tax return because the information provided in the annual tax return can be verified with the Business Activity Statement lodged with ATO, your bank statement as well as the monthly statement provided by the Rideshare companies. To claim for deduction of expenses, there should be receipt, or the logbook should be maintained.

Normally following expenses can be claimed as deduction in Rideshare Tax Return are:

Service Fee and Other Charges from Uber/Ola/Didi
Fuel Expenses
Telephone Expenses
Car Registration Expenses
Servicing, Repair and Maintenance
Insurance Expenses
Roadside Assistance
Finance cost if any
Depreciation on car
Protective clothing
Water and Mint for passenger

If you require any assistance regarding the queries of ATO or face any difficulties concerning the tax return, one of our friendly team can help you. Feel free to contact us on 08 93860047 or email at kamal@tfptax.com.au