The ATO are cracking down on Uber drivers (and other ride-sharing services) to ensure that they comply with their obligations.
Uber drivers must:
> have a valid ABN
> register for GST (regardless of how much they earn)
> lodge Business Activity Statements
> Pay GST on the full fare
> Only claim GST credits related to transporting passengers for a fare (must apportion personal use)
> Include income form Uber driving in their tax return
> Only claim tax deductions relating to transporting passengers for a fare (must apportion personal use)
The ATO collect data from other organisations, so know who the Uber drivers are.
If drivers continue to ignore the requirement to have an active ABN and have an active GST registration, the ATO may register them for GST and backdate the registration. The uber driver will then be required to lodge and pay all outstanding tax obligations.
The ATO may also issue penalties and charge interest on amounts that were owing.
If you are an Uber driver and need some assistance to ensure you are compliant with ATO requirements, contact us on (03) 5229 1290.