You can claim a deduction for expenses incurred directly related to earning your income. This includes costs like travel, uniforms, tools, and equipment.
However, the Australian Taxation Office (ATO) has specific rules around what can and cannot be claimed.
What is Work-Related Travel?
Work-related travel involves journeys undertaken for the purpose of performing your job duties. This could include:
- Travelling between different work locations
- Attending client meetings or appointments
- Visiting suppliers or contractors
- Attending work-related conferences or training
If your Uber journey fits into any of these categories, there’s a good chance you can claim it as a tax deduction.
Can I Claim Uber for Commuting?
Unfortunately, you cannot claim Uber fares for your regular commute to and from work.
This is considered a personal expense and is not deductible.
However, if you work from home and need to travel to a temporary workplace, you may be able to claim a portion of your travel expenses, including Uber fares.
What Records Do I Need to Keep?
To successfully claim Uber fares as a tax deduction, you must maintain detailed records.
The Australian Taxation Office (ATO) requires you to keep records for five years.
These records should include:
- The date of the journey
- The starting and ending points of the journey
- The purpose of the journey
- The cost of the Uber fare
- Any receipts or invoices for the Uber ride
It’s recommended to keep a digital log for easy access and storage.
Several apps and software solutions are available to help you track your expenses.
Can I Claim Uber Eats for Work?
Uber Eats is primarily a food delivery service, but there might be instances where you can claim related expenses.
For example, if you’re an employer reimbursing employees for work-related meals, you might be able to claim Uber Eats expenses.
But the rules can be complex, so I encourage you to seek professional advice when necessary.
Do I Need to Claim Every Uber Fare?
You don’t have to claim every Uber fare. It’s often more practical to claim a reasonable estimate of your work-related travel expenses.
You can use methods like a logbook or diary to track your business kilometres and calculate a deduction based on a percentage of your total Uber expenses.
What if I Use My Own Car for Work?
If you use your own car for work-related travel, you might be eligible to claim car expenses as a deduction.
You can choose between the cents per kilometre method or the logbook method.
Both methods have their advantages and disadvantages, so it’s important for you to understand the differences before making a decision.
Can I Claim Uber for Job Hunting?
Generally, expenses incurred while job hunting aren’t deductible. However, there are some exceptions.
If you’re required to relocate for a new job and incur travel expenses, you might be eligible for a deduction.
You need to check the specific ATO guidelines for job-related expenses.
What Happens if I Get Audited?
Being prepared for a potential audit is crucial. Ensure your records are accurate, complete, and readily available.
If you’re unsure about any aspect of claiming Uber expenses, it’s advisable to seek professional advice from a tax accountant.
How Can I Maximise My Tax Deductions?
To maximise your tax deductions, it’s essential to understand all eligible expenses.
Besides Uber fares, you might be able to claim deductions for other work-related costs such as phone expenses, internet, and office supplies.
Keeping detailed records is necessary if you hope to claim all legitimate deductions.