Are you a rideshare driver ready to file for tax deductions this month? We have a checklist that can maximize your savings on tax returns as well as help you efficiently plan your business finance.
You may have been regularly maintaining a logbook for all the trips you complete everyday or you can make one right before the end of June.
You don’t need to present an entire year’s data. All you need to do is keep a steady and accurate record over twelve consecutive weeks of the car’s mileage for every trip and you should be able to claim return on all your car expenses (during business usage).
This twelve week logbook should be started before the end of a financial year, in June, to be valid for filing return in the following financial year. If you don’t have a proper logbook then you will be limited to the ‘cents per kilometre method’ instead, which is capped at a $3,600 total deduction.
This is essential for Uber and other ride-hailing individuals to record the last odometer reading of their car on 30 June, before the official end of the previous financial year.
Your odometer reading still needs to be presented even though your logbook is complete and perfect. Remember the date, create an automatic reminder and you are all set to save good on your taxes!
Got any big business expenses coming up? Like an insurance premium or annual maintenance check for your car, it is wise to prepay for these before 30 June and drop the worry of delaying the tax return by a whole year!
It’s okay to face downs in a business especially when you have to go with what each day brings. But it is actually possible to cover this loss simply by realizing it a little early before the end of the year.
This also helps create a purpose and direction for financial planning. Make it a habit to be aware about your gross income and expense for your rideshare business at all times. You can claim tax return for the loss amount incurred if your gross income (excluding GST before deducting business expenses) is $20,000 and above.
Try assessing your income to expense difference at least fourteen days prior to the end of the financial year so you still have time to push some extra hours into work and meet the $20,000 mark if it is a little less than that.
If you are planning to buy a car for your ride-share business (and occasional personal use) be sure to get it delivered before 30 June to avail the Temporary Full Expenses write-off in the current year’s tax returns.
Alongside that, you will also need to start a logbook for the new car before end of June, record the last reading of the odometer on 30 June, in fact if you are not expecting to drive Uber trips until the start of July, you can record any other trip in the logbook and file for return!
As soon as you get an ABN, you are officially a business owner and rightfully have the access to all resources that can help your business succeed, increase your income and boost your savings.
But not a lot of intelligent tool-kits are available for the self-employed workers in Australia, especially those on the go, like Uber drivers. That’s where we come in!
These features will either cost you time or money to put to use in your business manually. But the MyGigsters app brings you the freedom to use all this and more! Best part? It’s still free!
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