Don’t get overwhelmed by your tax requirements! Rideshare Tax is here to help you. We will help you complete these 6 simple steps to stay on top of your tax obligations.
Step 1. Apply for an ABN and register for GST
As a member of Rideshare Tax, we will get you registered for your ABN and GST, free of charge. That certainly takes the hassle out of this step!
The ATO requires all rideshare drivers to have an ABN and be registered for GST from the first dollar they earn. This applies even if you only drive occasionally.
Normally an individual must meet certain requirements to be considered to be running a business and are only required to register for GST once their annual income reaches $75,000. However, the ATO has special rules for taxi and rideshare drivers and you have to be registered for GST.
Step 2. Open a new bank account for your rideshare business.
Congratulations, you’re now a business owner!
As a business owner, you have a legal responsibility to track and report your business operations. As well as the Rideshare Tax app, we also recommend you have a bank account dedicated to all your rideshare business transactions. You can also transfer money to your personal bank account to spend however you want to.
Step 3. Keep records of all your income and expenses.
Rideshare Tax provides a simple way to track your income and expenses so that we can take care of the bulk of the work. As a business, it is your legal responsibility to keep clear records of both your income and your expenses. That’s why this step is so important.
But don’t worry! Rideshare Tax has you covered on this step. The Rideshare Tax app has an inbuilt receipt capture feature so you can store all your records in your app, in the one place.
We also recommend keeping the hard copies in a safe place.
Step 4. Keep a car logbook.
Your car is an important, and potentially your biggest, tax deduction. Rideshare Tax will help ensure you get this right. Simply go to the Logbook section in the app and start your logbook.
You can find more information on the requirements of a car logbook in the Keeping a logbook for your ridesharing business Blog.
Step 5. Lodge your quarter BAS.
Rideshare Tax makes tracking your GST obligations easy.
As a business registered for GST, you are required to lodge your BAS and pay GST every quarter.
Rideshare drivers must pay GST on the gross fare from the passengers including the fees deducted from the rideshare company. However, you are entitled to claim back the GST on business-related taxable expenses, such as fuel. This is why good record-keeping is essential to minimise your GST payments. This means each quarter you will pay the ATO the net difference between the GST you have collected on fares and the GST you have paid on eligible deductions.
Members of Rideshare Tax have access to a LIVE GST reporting so you will always know how much GST to keep aside. This means you can ensure you have the money ready and available to pay at lodgement time.
Step 6. Lodge your tax return.
Rideshare Tax includes a Rideshare Tax online form to help you declare your taxable income at the end of each financial year.
Since you have been tracking your income and expenses through the app all year, tax time is much easier! Ensure you keep money to pay your income tax. Once you have lodged your first tax return the ATO may start asking you to pay instalments towards your tax bill every time you lodge your BAS.
And that’s all. Join Rideshare Tax and stay ATO compliant so you can Drive more and worry less about tax.