We have seen a huge influx of Uber drivers, that are being given incorrect advice, partly because they are relying on friends and others in the industry, which is partly also due to their accountant not giving them the support that they need.

We have developed the following 8 steps, to being Uber good:

1) Get an ABN – this is a must if you are running a business (which is effectively what Uber is meant to be!);

2) At the same time as getting an ABN, register for GST – this is also a must with current issues going on between Uber and the ATO. The ATO believe that Uber drivers should be treated the same as taxi drivers, and ALL taxi drivers must register for GST, regardless of how much money they make. Better to be safe than sorry!

3) Open a bank account, that is specifically for Uber income. You can also pay for Uber expenses from there too. This will keep your paper trail neat and tidy, and your accountant will LOVE you for it!

4) Set up a bookkeeping/record keeping system. If you are computer savvy, and love the cloud, you can sign up to software providers such as Xero or MYOB. If you prefer to keep costs low, just a plain old Excel spreadsheet will do.

5) Make sure you are keeping track of all your expenses, relating to your Uber business. So all fuel, services, tolls, car registration, insurances etc – make sure you are recording this and keep it ready for your accountant.

6) Get a logbook for your car – yes it is painful, but it must be done. It only needs to cover 12 weeks (3 months), and you can keep using it for 5 years. Make sure you pick a period that is a true reflection of your usual travel.

7) Be diligent and put funds aside for GST and tax – 10% for tax, and 10-30% for tax is what we recommend. You do not want a big nasty tax bill, so be prepared for it. Don’t spend it – putting a bit every time you get paid away, and you will thank your younger self in the future.

8) Engage a good accountant, that is up to date with the changing times! Some accountants do not even know about Uber, AirBNB and Airtasker. Work with professionals that know about the new business opportunities and have clients that are currently working in these realms. It pays in the long run, because you are claiming what you are entitled to claim.