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Uber Driver Tax Deductions

Attention all UBER drivers! Are you genuinely maximizing your deductible expenses in the UBER business to save on taxes, or are you engaging in practices that might jeopardize your entitlement to the most significant deductible expense items, particularly related to your vehicle? Learn about Uber driver tax deductions to ensure you drive your business toward maximum savings.

uber driver tax deductions
Tax return check for uber drivers

As an Uber driver, your most substantial deductible expense revolves around vehicle-related costs, encompassing fuel, tolls, parking, repairs, registration, and vehicle insurance. These expenses, inclusive of GST, serve as essential deductible items to effectively reduce your taxable income. However, adhering to the correct procedures is crucial; failure to do so may render these expenses non-deductible, potentially leading to repayments of claimed GST without any corresponding deduction to offset your taxable income.

Vehicle-Related Costs: The Core Deductible Items

It’s noteworthy that, as an Uber driver, you are not operating a taxi, which falls under the exempt category in the GST act and doesn’t necessitate a logbook. Given that you likely use your family car, maintaining accurate records becomes essential.

Logbook Method: Substantiate Your Vehicle Expenses

To determine the percentage of your vehicle used for business purposes, a valid logbook with entries meeting ATO standards is necessary. Consistent logbook maintenance for 12 weeks is required, recording trip details, open and end odometer readings, total kilometers traveled, and your signature on each entry. Failure to comply with these conditions could render the logbook invalid, resulting in lost claims.

One effective method to substantiate vehicle expenses is the logbook method. For instance, if 60% of your travel is for business, you can claim 60% of your total expenses, including depreciation.

Another viable method is the cents-per-kilometer approach. If you’ve traveled 3,000 business kilometers during the income year, you can claim $1,980 using the formula: 3,000 km × 66 cents per km.

EndureGo Tax extends a valuable service to Uber drivers in Sydney with a tax check for a nominal fee of $10. We meticulously examine your tax affairs, ensuring strict compliance with ATO standards, with a specific focus on the vehicle expense recording mechanism. Reach out to us at 0410-829-900 or email JC@endurego.com to take advantage of this limited-time offer and secure peace of mind, especially during potential audits.