- Track Mileage
As per IRD, we can use two methods to claim certain expenses, one is actual methods another is the millage rate method. In Actual, you can claim fuel, insurance, repair and maintenance depreciation, registration and fitness. But in the Millage rate (second method) we can use the advise rate by Inland revenue and claim that as a business expense. Example: As per last year’s prescribed rate by IRD, if you have driven 20000KM, we can claim $14500 as a business expense.
2. All vehicle accessories/expenses
You might not be aware that we are allowed to almost all the expenses incurred to generate income even if that includes accessories to your car, Like Window tinting, car seat cover, car mat, car mobile charger, phone holder, dash camera, reverse camera etc. Don’t forget to keep records of these expenses.
3. Interest paid on MV loan
If you are driving a rideshare motor vehicle that is on finance, you can claim interest and admin fee paid against the motor vehicle loan.
4. Home garage office expense
As per IRD, if you are using your home as an office you are entitled to claim that as business expense. So as a rideshare driver if you are using your garage to park your motor vehicle you can claim that portion as a business expense.
5. Cleaning/ grooming and maintaining.
Rideshare drivers would need to clean and maintain their cars clean and have to wash cars frequently. All the expenses incurred to keep your clean and tidy can be claimed as business expenses at the end of the year’s tax return.
6. Mobile phone.
We all need to use our mobile phones for apps like Uber, Ola, Didi, logmate etc. The mobile phone you are using can be claimed completely if it’s under the value of $1000 or depreciated over the years if it’s over $1000. Mobile phones can be claimed 100% if you are using separate for business or 50% if the same for business and personal.
7. Clothing
If you are a food delivery driver like Uber Eats, Menu Log, or DoorDash etc, At times of bad weather, the delivery drivers need to out to deliver the food and they might need to waterproof raincoats to protect themself from rain. So they can claim that as an expense.
Remember, every dollar saved is a dollar earned! If you want to learn more about optimizing your tax strategy, fill out our callback form, and our experts will guide you through the process.
