Cars are motor vehicles (excluding motorcycles and similar vehicles) carrying loads of less than one ton and fewer than nine passengers. This definition includes many four-wheel drives. Hence, motorcycles and scooters are not classified as vehicles under this category. Here is some important information to help you maximize your tax return as an Uber Eats driver handling delivery requests through the Uber Eats app or similar driver apps.
Should I Get a Scooter for the Uber Eats Delivery Service Instead of a Car?
If you’d rather be comfortable, then a car may be the better option, but if you’d like to save on fuel costs, a scooter is the smarter choice. Many couriers using the Uber Eats app prefer scooters for their cost-efficiency. Please read on to ensure you’re doing it right to maximize your tax refund for your scooter’s running expenses.
Maximizing Tax Refund for Scooter Running Expenses
Please note that you cannot use the cents per kilometre or logbook method to claim expenses for scooters; you must use the actual expense method instead.
Please keep all your running expense records. It is essential to keep receipts and details of costs such as fuel and maintenance. Additionally, it is crucial to show how you compute your delivery work as a percentage of your total travel.
While keeping a logbook is not mandatory, it’s still the easiest way to show how you’ve calculated your work-related use of the vehicle, even when using the driver app on a scooter.
You can’t claim a deduction for other people’s vehicles under work-related car expenses. However, if you’re delivering food through the Uber Eats app, Menulog, or other platforms, you can still claim your deduction as a work-related travel expense.
When Can You Claim a Deduction?
You can claim a deduction for work-related car or scooter expenses if you use your vehicle to:
- Perform delivery duties (e.g., picking up and delivering orders via the Uber Eats app).
- Travel from your regular place of work to meet customers.
- Attend work-related conferences or meetings.
- Collect supplies or deliver items.
- Travel between two or more places of employment (excluding your home unless it’s a base of operations).
- Travel from your workplace or home to another work location (e.g., client’s address) that isn’t your regular work site.
If you don’t own the scooter or car, you may only claim the actual expenses of running the vehicle. The cents per kilometre and logbook methods are not allowed in these cases.
As the leading professional CPA accounting firm in Inner West Sydney (Ashfield), Belrose Northern Beaches, and Adelaide, South Australia, we are well-positioned to help you maximize your tax return as an Uber Eats driver using the Uber Eats app or any other driver app platform. Get in touch with our team today for personalised guidance tailored to your delivery business..
