Operating a taxi business can make managing your finances a constant challenge. Staying on top of every day bookkeeping and accounting functions requires considerable time and can put a strain on your resources.
The ATO has recently announced that in their opinion, Uber drivers are providing a “taxi service” and must obtain an ABN and register for GST regardless of their income level, as the $75,000 GST threshold does not apply to taxi services. Does this mean Uber drivers are running a business? Can they claim any deductions? The answer to that is Yes (mostly).
All Uber drivers must now charge 10 per cent more (or ultimately keep 10% less) to account for GST and report the amounts to the ATO by lodging Business Activity Statements (BAS). GST on all Uber related expenses can be claimed as an offset against the GST collected on fares.
Nobel Thomas specialises in offering fixed fee accountancy solutions to self-employed and small limited companies. Our fixed fee solutions will take care of all your personal and business taxation needs and you’ll never have to worry about any unexpected costs.
If you are a taxi or Uber operator, we can help you with the following:
- Completion of your Self-Assessment Tax Return
- Advice on Income Tax payments
- Advice throughout the year on how to manage your business
- Ongoing proactive tax advice
- Help dealing with ATO
- Updates and reminders of important accounting dates