# ATO and BAS



## Become_The_Best (May 13, 2018)

Today ATO asks me to lodge my BAS for the period from April to June, the problem is I started UBER a month ago and my logbook is not yet filled for 12 weeks. Whats the solution for this?

Thanks


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## Jack Malarkey (Jan 11, 2016)

Become_The_Best said:


> Today ATO asks me to lodge my BAS for the period from April to June, the problem is I started UBER a month ago and my logbook is not yet filled for 12 weeks. Whats the solution for this?
> 
> Thanks


The 12-week logbook is necessary for income tax purposes if you don't use the cents per kilometre method but is not required for GST purposes.

For GST purposes, you can use any method that represents a fair and reasonable apportionment. See GSTR 2006/4 and in particular paragraph 32: http://law.ato.gov.au/atolaw/view.htm?DocID=GST/GSTR20064/NAT/ATO/00001.

For income tax purposes, the Australian Taxation Office has relevantly advised:

'If you started to use your car for business purposes less than 12 weeks before the end of the income year, you can continue to keep a logbook into the next year so it covers the required 12 weeks'.

(https://www.ato.gov.au/Business/Inc...cle-expenses-as-a-sole-trader/Logbook-method/)


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## Become_The_Best (May 13, 2018)

Jack Malarkey said:


> you can use any method that represents a fair and reasonable appointment


What do you mean by a fair and reasonable appointment?


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## Jack Malarkey (Jan 11, 2016)

Become_The_Best said:


> What do you mean by a fair and reasonable appointment?


Sorry, I meant 'apportionment' (now corrected in the original post).

Base it on the best information you have available to you by the time you need to lodge your BAS (28 July). By then, your logbook will be close to 12 weeks old and should be a good guide for you.


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## Become_The_Best (May 13, 2018)

I am trying to submit my BAS on Airtax. How do I determine my business percentage when my logbook is not even a month old? I shouldn't be using Airtax at all since my logbook is not 12 weeks old? Or can I put a reasonable number in the percentage?

Thanks


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## Jack Malarkey (Jan 11, 2016)

Yes, just use a reasonable number as per my answer to your essentially the same question in another thread: https://uberpeople.net/threads/ato-asks-me-to-lodge-my-bas.267088/.

Why are you lodging now? Normally, you lodge your BAS after the relevant quarter ends. The current quarter ends on 30 June and the BAS and payment is due by 28 July.

Are you certain the ATO is requiring you to lodge for the current quarter even before it ends?


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## Become_The_Best (May 13, 2018)

Jack Malarkey said:


> Are you certain the ATO is requiring you to lodge for the current quarter even before it ends?


I spoke to a ATO guy and he is clueless about how UBER works, but he says its normal for them to send a letter saying that my BAS is due before the end of July.


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## Jack Malarkey (Jan 11, 2016)

Become_The_Best said:


> I spoke to a ATO guy and he is clueless about how UBER works, but he says its normal for them to send a letter saying that my BAS is due before the end of July.


 Wait until after 30 June because the quarter ends on 30 June and you need to include figures until the end of the quarter. You then have until 28 July to lodge and pay.


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## Become_The_Best (May 13, 2018)

Spoke to an ATO guy today, he told me that when I do UBER, I should pay GST only based on my actual earnings, not the full fare the passenger paid to the UBER.

For Example:

If a passenger pays $55 to the UBER and I get paid $44 , the GST payable is $4, NOT the $5. This contradicts what they have said in their website: https://www.ato.gov.au/General/Ride-sourcing-and-tax/Fares

What can I do about this now?

Thanks


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## Become_The_Best (May 13, 2018)

In Airtax, my UBER income is shown as $7211 from 9/05/2018 to now. But the problem is when I add the fares in the UBER payment statements, they do not add up to this number? Do you have any clues?

Thanks


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## Jack Malarkey (Jan 11, 2016)

Did you by any chance choose to lodge your BAS every month rather than every quarter (every three months)?


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## Become_The_Best (May 13, 2018)

Jack Malarkey said:


> Did you by any chance choose to lodge your BAS every month rather than every quarter (every three months)?


No I am certain that I have chosen the quarterly method


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## Jack Malarkey (Jan 11, 2016)

Become_The_Best said:


> No I am certain that I have chosen the quarterly method


Well you should wait until after 30 June (but no later than 28 July).


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## UberDriverAU (Nov 4, 2015)

That page is now out of date. At the time it was last updated (21 July 2017) most drivers couldn't claim a GST credit for Uber's service fee, so your net GST payable was GST on the full fare minus other GST credits. As Uber now operates through an Australian company, you can now claim a GST credit for Uber's fees. So your net GST payable is GST on the full fare minus a credit for the GST on Uber's fees minus any other GST credits.


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## Become_The_Best (May 13, 2018)

UberDriverAU said:


> So your net GST payable is GST on the full fare minus a credit for the GST on Uber's fees minus any other GST credits.


So basically in layman terms, we just need to concentrate on the income we get to our bank account and divide it by 11 to pay the GST? 
The problem is Airtax has not incorporated this in to their software, they calculate our income as the full fare.


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## Jack Malarkey (Jan 11, 2016)

Become_The_Best said:


> So basically in layman terms, we just need to concentrate on the income we get to our bank account and divide it by 11 to pay the GST?
> The problem is Airtax has not incorporated this in to their software, they calculate our income as the full fare.


You need to reach the position you outline in two separate steps: (1) declare the gross fares as sales; and (2) claim an input tax credit on the service fee.

So Airtax is correct.


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## Become_The_Best (May 13, 2018)

Jack Malarkey said:


> claim an input tax credit on the service fee


Yes. In ride share fees section


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## Who is John Galt? (Sep 28, 2016)

Become_The_Best said:


> ===/===
> Do you have any clues?
> 
> Thanks


Very tempting, but I'll leave it this time.

.


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## Jack Malarkey (Jan 11, 2016)

Become_The_Best said:


> Yes. In ride share fees section
> View attachment 237739


Correct.

I see you are claiming 95% of the rideshare fees. It should be 100% for this particular expense as there's no private element.


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## Jack Malarkey (Jan 11, 2016)

Become_The_Best said:


> View attachment 237726
> 
> 
> In Airtax, my UBER income is shown as $7211 from 9/05/2018 to now. But the problem is when I add the fares in the UBER payment statements, they do not add up to this number? Do you have any clues?
> ...


I suspect it's a timing difference. Some trips where the rider has paid but you haven't yet received your share of the payment in your bank account (or even a weekly summary) may be reflected in one and not the other.

I suggest you use the Airtax figures if you're planning to use their services.

The Australian Taxation Office tends not to be overly fussed about minor timing discrepancies of this kind provided you are consistent in the way you report the income.


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