Suppose you are a Rideshare driver for Uber, Ola Didi. You are also known as a Sole trader or independent contractor. You need to file your tax return IR3 by the 7th of July unless you have a tax agent.
You can claim all expenses directly linked to your rideshare earning income. However, we can only claim costs per usage. Example: You may use the same vehicle to drive for Ola, Uber and for your personal use. So you need to allocate your proportion of business and personal use to work out your taxes.
We can claim vehicle-related expenses like Rent, depreciation, Registration, COF fee. We can also claim commission paid to the rideshare companies. Other costs like the TAMS card fee, Logmate subscription fee, Cleaning grooming fee, Mobile and Internet fee.
There are three ways you can claim the expenses for the vehicle you are using for rideshare purposes.
- Actual cost
- 25% of the vehicle running cost.
- Keeping the logbook.
GST
You need to register for GST if you believe that your income will exceed $60000 for the Financial year. If you don’t think that you will reach $60000, then it’s up to you if you want to register for GST or not.
Also, a lot of people gets confused with $60000 income. Some people believe that $60000 total income, It’s only your self-employed income.
Example:
Driver A is an Uber, Ola driver, and working in an office. Your annual salary from the office is $50000, and your before-tax income from Uber, Ola is $20000. So $50000 + $20000 = $70000, but you need not register with GST as $50000 is salary and only $20000 is taxable income.
Driver B: is a full-time Ola and Uber driver who earned or is estimated to earn $65000 in the given Financial year. Driver B needs to register for GST, as his self-employed income is over the threshold of $60000.
