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Newbie

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My husband has just commenced driving for uber as of September 2018, our question is can we operate under our company name with using the company ABN or does he need to operate as a sole trader? The reason asked is because the car he drives is owned under the company.

A second question is Are tips and bonuses GST applicable? 

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Hi @SamVella,

 

Welcome to our Community!

 

Further to the information provided by N_95, tips and bonuses paid to Uber drivers are subject to GST. This is because ride-sourcing is considered taxi travel and the same rules apply.

 

You can find more information about accounting and payment of GST in the Taxi industry on our website. Alternatively, if you have further questions you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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Enthusiast

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Hi @SamVella

In answer to your question I would suggest having a look at this (www.ato.gov.au/general/ride-sourcing-and-tax/income-tax-and-ride-sourcing) as it mentions
'As an individual driver you are personally providing the ride-sourcing services to your customers (passengers) through the platform and you have the obligation to declare any income received in your yearly tax return. It is important that you declare the income in your individual tax return and not in another entity such as a company, partnership or trust, even if you operate through such an entity in performing other services for a fee.

One exception involves fleet hire arrangements undertaken through the platform provider. In such circumstances, the fleet service provider might operate as a company, partnership or trust. The tax treatment of you as the driver in this situation depends on your arrangement with the fleet service provider.'
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Initiate

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You need to declare tips and bonuses as income in your tax return.

Tips is part of the fare, therefore GST inc. But on the other hand bonus is not, therefore GST ex.

 

Ps: I'm not an accoutant, this is my understanding only.

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Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @SamVella,

 

Welcome to our Community!

 

Further to the information provided by N_95, tips and bonuses paid to Uber drivers are subject to GST. This is because ride-sourcing is considered taxi travel and the same rules apply.

 

You can find more information about accounting and payment of GST in the Taxi industry on our website. Alternatively, if you have further questions you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.