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Please help me re vehicle log book and GST issue

679 views 6 replies 3 participants last post by  Jack Malarkey 
#1 ·
Hi everyone, I have started to drive Uber from last month. I would appreciate if anyone can guide me about the log book record and GST issue.
My questions:
1) for tax deduction on fuel, do I need to record ever single trip or should I just make one entry for a day? If I make every trip, then I will need to buy few log books for 3 months.
2) for GST return, do I need to get ABS straight away or can I wait till end of the year?

I would appreciate for any prompt response.
 
#2 · (Edited)
#4 ·
Thank you so much Jack. I highly appreciate for your help. I have registered for ABN and GST and already received my BAS in my govt account. Now can you please help me to figure out the net GST amount I have to pay. So I put my total income (including Uber fee) as Total Sales - G1. How about for purchase GST. Do I put my fuel expenditures + car insurance + rego fee for the quarter as Non Capital purchase - G11. Please confirm.
How about my monthly installment for my car financing? Can I add that too as Non Capital purchase - G11. Please confirm.
 
#5 ·
Thank you so much Jack. I highly appreciate for your help. I have registered for ABN and GST and already received my BAS in my govt account. Now can you please help me to figure out the net GST amount I have to pay. So I put my total income (including Uber fee) as Total Sales - G1. How about for purchase GST. Do I put my fuel expenditures + car insurance + rego fee for the quarter as Non Capital purchase - G11. Please confirm.
How about my monthly installment for my car financing? Can I add that too as Non Capital purchase - G11. Please confirm.
Yes, Nai. All confirmed.

When it comes to claiming the GST input tax credits themselves, generally claim only the business proportion by reference to your log book. So if you use the car, say, 80% for business and 20% privately, claim only 80% of the relevant input tax credits. If, however, the expense relates exclusively to rideshare, claim 100% of those input tax credit. Keep records of your calculations.

(The input tax credit is the GST you have paid on your purchases.)
 
#6 ·
Many thanks again Jack for your help, I really appreciate it. Please help me on one more issue. I have bought new car with $32,000, which has $3200 GST. I used about 80% for business uber, so UBER portion of GST is $2416. Now when I have compiled last quarter's uber income, it is $12,000 i.e. GST only $1200; fuel GST tentatively $350; Now if I claim the car purchase GST $2416 in the non capital purchase, the total GST claim would be ($2416+$350) $2766 whereas total GST in income is $1200. So now how it would work? Do i get back from ATO $1766 instead of paying. Or how do I report the vehicle purchase GST??? I would highly appreciate for a guidance from you, Jack or any other who has similar experiences. Many thanks in advance.
 
#7 · (Edited)
Nai, yes if your GST input tax credits exceed the GST you need to pay, the Tax Office refunds the excess to you.

Note that if a price incudes GST, the GST component is one-eleventh of the total.

So the GST component on the purchase of a car for $32,000 would be $2909.09. And 80% of that would be $2,327.27.

The GST payable on total fares of $12,000 would be $1,090.91.

So you would need to adjust your calculations to reflect the correct GST component but the principle that you would obtain a refund for this quarter remains.

Note also that from 1 July 2017, the Tax Office is simplifying the BAS but this will not affect the outcome. See my original post here about this: https://uberpeople.net/threads/new-simpler-bas-from-1-july-2017.172510/.
 
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