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Accounting for Uber Revenue

Discussion in 'Australia' started by JaySonic, Dec 27, 2016.

  1. JaySonic

    JaySonic Well-Known Member

    Location:
    Sydney
    I'll preface this by cutting short the inevitable 'talk to an accountant'. I simply don't drive enough and have a very small weekly income, that at this stage an accountant or book keeper fees are simply not viable. OK, moving right along. ....

    I'm using a free cloud based accounting package to keep a track of things, but how do I account for Uber income. Do I raise a tax invoice that corresponds with the payment summary ?

    My first thoughts are to create invoice line items as follows:

    Fare (inc: surge) $x
    Tolls $x
    Uber Commission $x
    GST $x

    ... and then allocate the payment to the invoice, leaving Uber Commission, which I'll 'write off' (or whatever) to keep a track of everything. I see no other easy way to account for paying GST on the whole amount, then taking Uber's cut.

    Suggestions? This is NOT for BAS, it for weekly book keeping purposes.
     
  2. UberDriverAU

    UberDriverAU Well-Known Member

    Location:
    Perth
    Driving:
    UberX
    Oh dear. You're obviously in over your head trying to do this stuff. You'd actually need to create an invoice for each and every fare. They are all seperate, individual, and unrelated transactions.
     
  3. JaySonic

    JaySonic Well-Known Member

    Location:
    Sydney
    Thanks for your input.

    Blocked.
     
  4. UberDriverAU

    UberDriverAU Well-Known Member

    Location:
    Perth
    Driving:
    UberX
    That's fine by me. Just hope you don't get audited by the ATO, you'll wish you'd have gone the cheaper option and got a professional to do it for you.
     
    Drivingthecattlehome likes this.
  5. whyza

    whyza Well-Known Member

    Location:
    world
    ...as per income tax I let professional tax accountant to do it...as per GST I have my "formula" based on the money received on my account in my bank...
    ...so...sum of money from foober in my bank divided by factor of 8 then multi-played by 10,-that gives 20% foober cut.Add those two sums which gives you the sum you have to pay GST on...Deduct all my expences (tolls,petrol,services,etc,etc)...it works with drivers on 20% foober cut...
    ...I might be wrong,but doing the way I'm doing it gives me a sense of cutting off possible rip off by foober if foober charges more for rides than paying the drivers and leaving them to pay GST on the difference between full fare and money the driver got paid...
     

  6. fields

    fields Well-Known Member

    Location:
    sydney
    Anyone with half a brain should be able to do it themselves without the need of an accountant.
     
    Paul Collins likes this.
  7. whyza

    whyza Well-Known Member

    Location:
    world
    ...so I assume that you don't need an accountant...;-)))))))))))))))))))))))))))))))))))))))))))))
    ...how easy is to live with half of brain?????...;-)))))))))))))))))
     
    Bandy and Drivingthecattlehome like this.
  8. fields

    fields Well-Known Member

    Location:
    sydney
    I do use one albeit begrudgingly. You can't even get a mobile phone contract if self employed and not using an accountant.

    In jaysonic's case, who i assume has income from other sources, this problem would not apply.
     
  9. UberDriverAU

    UberDriverAU Well-Known Member

    Location:
    Perth
    Driving:
    UberX
    The correct way to do it is calculate the GST on each fare. That is: each fare divided by 11, rounded to the nearest cent. Add all of these together and you get the total GST debits for your Uber income.

    Calculating your GST credits is more complicated because some expenses don't have GST at all, and some have partial GST. In other cases you need to consider the percentage business use of an asset (eg. car, mobile phone) to determine the credits you can claim.
     
  10. whyza

    whyza Well-Known Member

    Location:
    world
    ...same destination,different way...everything purchased in Australia has GST input,foober cut does not,that is why I'm doing as I'm doing...if foober charges more for rides then it show me, that is not my problem as GST is concern,I just would not pay GST on money possibly "skimmed" by foober with new upfront pricing...don't want to even think that it is possible but I know it is...so as far as I know the full fare is what I get into my account plus 20% and that is my obligation to pay GST upon...
    ubers-upfront-pricing-is-secretly-overcharging-passengers-without-paying-drivers/
    GOOGLE IT
     
    Last edited: Dec 28, 2016
  11. UberDriverAU

    UberDriverAU Well-Known Member

    Location:
    Perth
    Driving:
    UberX
    The full fare is the correct starting point. If the ATO audits you, that's what they'll be working from and there will be no discrepancies if you calculate your GST liability using the full fare. Working in reverse from your payout figure may result in some discrepancies, and it's better for you if there are none.

    I know all about the upfront pricing scam that Uber runs, and I've already given my views on why it's unlikely to happen here in Australia.
     
  12. whyza

    whyza Well-Known Member

    Location:
    world
    ...you are entitled to your views ...
     
  13. JaySonic

    JaySonic Well-Known Member

    Location:
    Sydney
    Indeed, google it.

    Direct from ATO website:

    If you are registered or required to be registered, GST must be calculated on the full fare, not the net amount you receive after deducting any fees or commissions.
     
  14. JaySonic

    JaySonic Well-Known Member

    Location:
    Sydney
    I see nobody is able to answer my question either.
     
  15. whyza

    whyza Well-Known Member

    Location:
    world
    ...in current situation driver have no way to find what the full fare was,therefore only way to find is to add (in my case)20 % to the sum of money paid by foober into my bank account...if there is any trouble foober will have to explain if they bridge the contract with me...
     
  16. Instyle

    Instyle Moderator Moderator

    Location:
    Gold Coast
    Statements available in partner dashboard, also at the end of each quarter Uber send a quarter statement showing full fare, commission, total in trip klms etc.
     
  17. Instyle

    Instyle Moderator Moderator

    Location:
    Gold Coast
    JaySonicJaySonic if your accounting software requires you to raise an invoice to log the funds, all you need to do is raise an invoice to match the weekly statement using full fare all inclusive. Just double check your numbers match the statement.
     
    JaySonic likes this.
  18. whyza

    whyza Well-Known Member

    Location:
    world
    ...after reading about what uber is doing with upfront price I'm not sure if the full fare is what I assume to be one...and how would you know how uber define "full fare"???
     
  19. Instyle

    Instyle Moderator Moderator

    Location:
    Gold Coast
    Your statement online shows the customer charge.
     
  20. whyza

    whyza Well-Known Member

    Location:
    world
    ...it would mean nothing if there is a discrepancy between what I got paid and 20% uber cut...we still don't know what passenger paid in relation to what we get paid
     

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