Your car is potentially the most significant deduction in your Uber and ridesharing business and your vehicle logbook is crucial for your deduction.
Rideshare Tax explains.
Why do you need a logbook?
Since you may use your car for both work and personal trips, you must keep a vehicle logbook to track all of your Uber and ridesharing business use. Your logbook tells us the proportion of your total car use that’s for your ridesharing business, so we can correctly calculate the amount of car-related expenses we can deduct – for both your Uber GST and Uber tax returns.
What the ATO expects from you
The ATO requires you to keep a logbook for 12 weeks with regular business use. You must record:
- The date and the odometer reading at the start of the 12 weeks.
- Your odometer reading at the start – and end – of your ridesharing working day. You can include:
– from your home to your first passenger
– from your last passenger back to your home
– the kilometres between passengers.
- Your odometer readings at the start and end of all personal trips.
- Your odometer reading at the end of the 12 weeks.
How to calculate the proportion of business use
By now you will have the total number of kilometres you’ve travelled, and the total number of business kilometres. Divide your total business kilometres by the total kilometres. This is your percentage of business use.
Drive for multiple rideshare companies?
If you drive for multiple rideshare companies and have the Uber driver app, as well as the Didi, Ola and Shebah driver apps on, then all of your car travel is considered as business use.
Keep your logbook valid
To ensure that your logbook remains valid, you must also:
• Record the odometer reading at the start and the end of each financial year.
• Update your logbook every five years (or earlier if your business use changes).
• Let us know about long periods when you didn’t use the car for work.
Don’t worry! The Rideshare Tax app has an inbuilt digital logbook to ensure your logbook complies with ATO requirements.
Once your logbook is complete, the app will automatically calculate your percentage of business use and apply that to all your motor vehicle expenses. All you have to do is enter your motor vehicle costs. We do all the rest for you.
Do you drive your car 100% for your Uber and ridesharing business?
If so, you still need to keep a logbook and show all the trips you’ve made.
What happens if you don’t have a ridesharing logbook?
BAS / GST
For GST purposes, the ATO will accept a reasonable estimate of your business use percentage. If you don’t have a logbook, don’t panic. You can still estimate the percentage of your business use.
For your end of year tax return, it’s best to keep a ridesharing logbook so you can claim the maximum deductions possible from your ridesharing business.
If you don’t have a valid logbook, you may not be able to claim all of your motor vehicle expenses. What’s more, your claim will be capped at a maximum of 5,000 kilometres a year, with the cents per km method. This works out to a maximum of $3,300 (5,000km x 0.66c per km). This is why we strongly encourage all our Rideshare Tax clients to keep a logbook.
Keep all your receipts, take a photo and store in your app!
You must also keep evidence of all the car expenses you’re claiming, such as receipts. A logbook is not enough to prove and make a claim on your Uber BAS and Uber tax return. You want every possible deduction. Get into the habit of keeping all your receipts and keep your logbook updated.