If you are an Uber driver in New Zealand, claiming expenses correctly is very important. Many drivers lose money or face IRD penalties because they claim expenses that are not allowed by IRD.
Why You Must Be Careful While Claiming Expenses
IRD allows Uber drivers to claim only business-related expenses.
If an expense is personal, partly personal, or not properly recorded, IRD can reject it.
Claiming wrong expenses can lead to:
Tax penalties
IRD audits
Extra tax payments later
Expenses IRD Does NOT Allow for Uber Drivers
1. Personal Car Use Expenses
You cannot claim full car expenses if you use your car for personal work like:
Family trips
Shopping
Personal travel
👉 Only the business-use portion is allowed.
Example:
If your car is used 60% for Uber and 40% personal, IRD allows only 60% of costs.
2. Traffic Fines & Parking Tickets
IRD does not allow:
Speeding fines
Parking fines
Red-light tickets
These are considered personal penalties, not business expenses.
3. Daily Personal Meals
Many Uber drivers think food is deductible — it is not.
❌ Not allowed:
Lunch
Dinner
Snacks during driving
✔ Allowed only in rare cases like overnight work trips (very uncommon for Uber drivers).
4. Normal Clothing & Shoes
You cannot claim:
Jeans
T-shirts
Jackets
Shoes
Sunglasses
Even if you wear them while driving Uber.
✔ Only branded uniform with company logo (very rare for Uber) may be allowed.
5. Full Phone & Internet Bills
IRD does not allow full phone bills if used personally.
❌ Not allowed:
Personal calls
Personal internet usage
✔ You can claim only the business-use percentage, not 100%.
6. Entertainment & Personal Subscriptions
Not allowed expenses include:
Netflix
Spotify
YouTube Premium
Gym memberships
Personal entertainment
These are personal lifestyle expenses, not business costs.
7. Car Purchase Cost (Full Amount)
You cannot claim the full cost of buying a car in one year.
❌ Not allowed:
Full car purchase price
✔ Allowed:
Depreciation over time
Or mileage method, depending on what you choose
8. Family Member Payments (Without Proof)
IRD does not allow payments to family members unless:
There is proper documentation
Payment is reasonable
Work is genuinely done
Cash payments without proof are usually rejected.
9. Expenses Without Receipts
No receipt = No claim ❌
IRD may reject:
Fuel
Repairs
Phone bills
Accessories
if you don’t have records.
Understanding what expenses IRD does NOT allow for Uber drivers can save you from stress, penalties and overpaying tax.
If you’re unsure what you can or cannot claim, it’s best to speak with an Elite Taxation, Trusted Rideshare or Uber accountant in NZ who understands Uber, GST and IRD rules properly.
