Menu
Hey there, Uber drivers! Let’s talk taxes. I know it’s not the most exciting topic, but it’s important to get it right.
We are a team of expert accountants for Uber tax returns. With over 7 years of experience and thousands of tax returns filed for rideshare drivers, we take the pride for being known as “Uber tax experts in Toronto”.
Our team is dedicated to making the process as smooth as possible for you. We handle the complexities of your tax situation so you can focus on what you do best—driving and earning. You can rest easy knowing your taxes are in expert hands!
Who exactly are rideshare drivers? Simply put, they’re everyday folks like you who use their personal vehicles to provide transportation services through apps like Uber, Lyft, and Uride. This means you’re self-employed and responsible for reporting your income, managing expenses, and paying taxes—just like any other small business owner. With the rise of the gig economy, rideshare driving has become a popular way to earn a full-time or supplemental income. However, it’s essential to understand the tax implications of this business arrangement to avoid any potential issues with the Canada Revenue Agency (CRA).
As an Uber driver, you’re considered self-employed and must report your income and expenses on your tax return. The CRA considers your Uber earnings as business income, which is subject to income tax. It’s crucial to know that every fare, tip, and incentive counts toward your taxable income. You’ll need to keep accurate records of your business expenses, including (not limited to):
As an Uber driver, you’ll need to file a personal income tax return (T1) and report your business income and expenses on Form T2125, Statement of Business or Professional Activities. You’ll need to calculate your net business income by subtracting your business expenses from your gross business income. Our accountants will guide you through the process, ensuring you’re meeting all the necessary requirements and taking advantage of all eligible deductions.
As an Uber driver, you’re required to register for GST/HST from day one, regardless of your income. You’ll need to charge GST/HST on your fares and remit the collected taxes to the CRA.
GST/HST Registration Requirements for Rideshare Drivers
With over 7 years of experience working for thousands of Uber drivers and other rideshare professionals; we understand your situation and unique tax challenges. We know the ins and outs of reporting your income, handling GST/HST, and maximizing your deductions. Our expertise means you’re getting tailored advice that fits your situation perfectly.
Here are some common issues that can lead to audits or penalties that you definitely want to avoid. By partnering with an expert accountant in rideshare taxes, you can sidestep these pitfalls and focus on what you do best—driving & earning!
One of the biggest headaches I see is misreporting income. With earnings coming in from various rideshare platforms, it’s easy to overlook some income sources. Maybe you forgot to include tips, bonuses, or earnings from a second app.
Why Does This Happen?
Consequences:
What You Can Do:
Many drivers struggle with maintaining proper records for their business expenses. Without organized records, it’s tough to report income accurately and claim deductions.
Why This Happens:
Consequences:
What You Can Do:
With busy schedules, it’s easy to overlook tax deadlines. But ignoring them can lead to serious consequences.
Why This Happens:
Consequences:
What You Can Do:
Did you know that as a rideshare driver, you’re required to register for GST/HST from day one, regardless of your income? This means that as soon as you start driving for Uber, Lyft, or any other rideshare service, you need to register. You’ll have to charge GST/HST on your fares and remit the collected taxes to the CRA.
Reasons This Happens:
Consequences:
What You Can Do:
A lot of our team members, including the founder have worked as incorporated contractors (consultants) for small to large sized organizations in the field of accounting, tax, and management consulting. This exposure makes us better understand the problems faced and the expectations you would have from your accountant as a self-employed.
Many drivers don’t fully grasp which expenses can be deducted. This can lead to overpaying taxes when you could be keeping more of your earnings.
Reasons This Happens:
Consequences:
What You Can Do:
Many rideshare drivers fail to track their mileage accurately, which is crucial for claiming deductions. This oversight can significantly impact the amount you can deduct from your taxable income.
Reasons This Happens:
Consequences:
What You Can Do:
Zoombooks is a must have app for Uber drivers. It helps drivers save tax and be on top of financials. Zoombooks is “built by accountants for self-employed”.
Download Zoombooks, its free!