The popularity of Uber has seen those drivers with a good car and good driving skills access a steady stream of side income. Similar to the reality of driving on an empty fuel tank, letting your tax obligations as an Uber driver fall to the wayside can land you in some hot water. Getting your tax obligations and accounts in check at the start of your Uber journey, will ensure that your ongoing longevity as a successful Uber driver stays in tact as well as your relationship with the ATO.
Enlist the help of an accountant
If you are just starting out or have been an established Uber driver for some time, the best thing to do is to enlist the help of a qualified accountant. At HA Accounting, we can help ensure you have all your accounts and tax obligations in order.
Set up your finances correctly
As an Uber driver, you act as an independent contractor, meaning any additional income you earn must go through your ABN and added to your taxable income. Your accountant can help assist to set you up as a sole trader, generate your ABN, assess your need to register for GST and ensure your tax and super obligations are met.
We setup cashbook Xero files to keep track of your spending with bank feeds. This can be as little as $10 per month. Save the hassle out of preparing for tax time.
Making the most of your deductions
There are many handy deductions you can claim as an Uber driver including:
- Car registration and insurance
- Car repairs
- Car maintenance and cleaning costs
- Uber registration fees
- Mobile phone calls (related to work)
Buy enlisting a qualified accountant, they can ensure you are maximising the deductions every financial year to optimise your refund.
Online accounting software
Utilising online accounting software such as Xero Cashbook will help look after the finance side of your Uber business. It saves you time by eliminating time consuming data entry and puts all your client information in the one place. Starting from just $5 per month, it is a fabulous investment into your Uber business.
At HA Accounting, we specialise in managing Uber Drivers’ accounts, so get in touch today.