Tax issues associated with ride sourcing services such as Uber remain a hot topic of debate.
How to claim car expenses related to these activities is one frequently asked question.
In simple terms, the rules for ride sourcing vehicles are no different than that for any other taxpayer. Car claims need to be made using either the cents per km or log book methods.
The cents per km method applies to vehicles doing up to 5000km for business per year. This will suit more part-time drivers. There is no need to keep any sort of specific records, but you may be asked to justify how the kilometres were calculated (diary records etc).
The log book method is for those more regular drivers who will do more than 5000km per year in business kilometres.
It involves a 13 week log book to establish a percentage use of your vehicle for business purposes. This percentage can then be applied to the running costs, finance costs and depreciation of the vehicle.
Also, the ATO has provided some guidance as to when business kilometres may start and finish.
For example, if someone is traveling for private purposes and then receives a job in transit, they can treat the travel as work related from that point, when they drive to collect the passenger and then drop them to their destination.
If, however, someone leaves home soley for the purpose of looking for work, then the travel can be deductible even if they do not end up providing any ride sourcing services. But if your intention changes on the way home (eg decide to meet friends or family) then travel from this point onwards would not be considered work related.
If you wish to discuss your particular ride sourcing work situation and related claims, contact us on 07 3359 5244 or