By Joe Smith
Most of you will know by now that Uber is coming to
Gladstone – it was only a matter of time before they expanded their operations
outside of the major cities! And while
many people will be interested in earning some extra cash, they should also be
aware of their requirements for tax purposes.
The ATO classes Uber and any other ride sourcing as taxi
travel. This means that anyone wishing
to operate a service through Uber must get an Australian Business Number (ABN)
and register for GST regardless of how much income they earn from it. There is no threshold that applies regarding
ride sourcing and the requirements for GST registration.
As with any other business, full records of all income and
expenses should be kept. Then the
expenses should be apportioned as only the percentage that relates to your
business activity can be claimed as a tax deduction. As well as this, GST can only be claimed on
the portion of expenses that relate to your business activity.
Business Activity Statements (BAS) will also be required to
be lodged on a monthly or quarterly basis and payments made to the ATO as
required. And then you will have to
declare your business income on your tax return for each financial year that
you operate a ride sourcing service. My
advice here would be speak to an accountant before you begin operating.
The key thing with this and any other business is that you
put funds aside to cover any amounts due for GST and tax. Not all of the money that you receive from
your business operations is yours to keep.
And with the ATO constantly improving their IT and data matching
abilities they may be able to identify exactly how much income that you
earn!
The ATO can also check vehicle and boat registrations which
they can use to identify any differences in the income you earn and the
lifestyle you lead. And keep in mind
that they can also check Facebook, Instagram and other social media too.
If you are thinking of starting a business and would like
our assistance please call UHY Haines Norton on 4972 1300 or email info@uhyhncq.com.au
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