If you are an Uber driver, you are an independent contractor, and you can claim your mileage as a business expense. In most cases, the Uber app tracks the kilometres you drive when there is a fare in your car, but for tax purposes, you can also claim the kilometres you drive in between fares or whenever you’re working. To create an accurate log book by hand, write down the reading on your odometer at the beginning and end of the year. That tracks your overall mileage for the year. During each shift, write down the odometer’s reading at the beginning and the end. This tracking method lets you figure out which portion of the time you drive your vehicle for work and which portion is for personal use. If you prefer to use an app, check out an app such as QuickBooks Self-Employed. This app lets you track expenses as well as mileage. To use the distance tracking portion of the app, turn on the GPS-enabled tracker at the beginning of your shift and turn it off at the end. The app handles the rest. Xpenditure offers similar tools and also syncs with your QuickBooks accounting software. To reduce your tax liability as an Uber driver, it’s critical to claim all of the kilometres you drive for work. A handwritten log or an app creates proof so you can easily claim mileage on your tax return without forgetting about a single kilometre.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.