Over the past few years, Uber has taken Australia by storm as a new, unique and flexible way of earning additional income for almost every one with a good car. As an Uber driver, the ATO sees you as self-employed – that means you’re not an employee of Uber, you’re a independent contractor. It’s important to remember that when you’re not an employee, Uber has no obligation to manage your tax affairs, you’re running your own business and you have to take care of your tax affairs by yourself.
The Australian Taxation Office (ATO) is very clear about this:
• Any money you earn from driving for Uber is your income – that means you must declare it on your Tax Return and pay tax on it every year.
• As a Uber driver you must register for GST then start to lodge a Business Activity Statement (BAS) quarterly, even if you earn less than the $75,000 GST income threshold – you may have to pay GST payable quarterly.
We know when it comes to taxes, it is stress and headache, so contact us now to get your tax affairs managed properly and correctly
The ATO automatically triggers a quarterly PAYG instalment plan for you to pay tax in advance for the future upcoming financial year, generally due to the income you earned from a previous financial year from sources such as rental property, business income, interest, dividends and distributions from trust/partnership over a certain net amount.