Bird’s Eye View
Bird’s Eye View
Bird’s Eye View
Taxes & the platform economy
A lot of people are making a little money on the side, driving for companies like Uber or SkiptheDishes. When you take on gigs like this, you are technically self-employed, with some specific tax obligations, particularly if you are engaged in commercial ridesharing.
Commercial Ridesharing
Commercial ridesharing is like taxi driving with your own car (for example Uber or Lyft).
What do I need to know?
As with any self-employed person, you must report all of your income, including tips, on your income tax return.
You are also eligible to claim business expenses such as fuel, administrative expenses, cell phone costs and other business-related costs.
What about GST?
Unlike other self-employment activities, if you are a commervcial rideshare driver, you must register for GST immediately. This bears repeating as it is unique for this sector. You must register for and charge GST from your very first ride.
You can also claim input tax credits for any GST you pay on your business expenses to offset the GST you collect.
Delivery services
Delivery service drivers who work independently for delivery apps like UberEats and SkipTheDishes are considered self-employed contractors with unique tax obligations.
What do I need to know?
Whether you work delivering full-time or as a side hustle, you must report all of your income, including any tips you earn, on your income tax return.
You are also eligible to claim business expenses such as fuel, administrative expenses, cell phone costs and other business-related costs.
What about GST?
If you only provide delivery services, you don’t have to register for GST until you surpass $30,000 gross over four calendar quarters (or less). (Although, you may choose to register for a GST number if you are earning less than $30,000, you are not obliged.)
But if you provide ridesharing services and delivery services, you must register for, collect, and remit GST on all fares from commercial ridesharing services.
What if I filed incorrectly?
If, in previous years, you did not report your income or register for GST when you were obliged to, you may have to pay penalties and interest. However, by voluntarily correcting these errors, you may avoid or reduce penalties and interest.
Feel free to reach out if you would like some clarification on these rules or need some help correcting tax returns from previous years.
Taxes & the platform economy
A lot of people are making a little money on the side, driving for companies like Uber or SkiptheDishes. When you take on gigs like this, you are technically self-employed, with some specific tax obligations, particularly if you are engaged in commercial ridesharing.
Commercial Ridesharing
Commercial ridesharing is like taxi driving with your own car (for example Uber or Lyft).
What do I need to know?
As with any self-employed person, you must report all of your income, including tips, on your income tax return.
You are also eligible to claim business expenses such as fuel, administrative expenses, cell phone costs and other business-related costs.
What about GST?
Unlike other self-employment activities, if you are a commervcial rideshare driver, you must register for GST immediately. This bears repeating as it is unique for this sector. You must register for and charge GST from your very first ride.
You can also claim input tax credits for any GST you pay on your business expenses to offset the GST you collect.
Delivery services
Delivery service drivers who work independently for delivery apps like UberEats and SkipTheDishes are considered self-employed contractors with unique tax obligations.
What do I need to know?
Whether you work delivering full-time or as a side hustle, you must report all of your income, including any tips you earn, on your income tax return.
You are also eligible to claim business expenses such as fuel, administrative expenses, cell phone costs and other business-related costs.
What about GST?
If you only provide delivery services, you don’t have to register for GST until you surpass $30,000 gross over four calendar quarters (or less). (Although, you may choose to register for a GST number if you are earning less than $30,000, you are not obliged.)
But if you provide ridesharing services and delivery services, you must register for, collect, and remit GST on all fares from commercial ridesharing services.
What if I filed incorrectly?
If, in previous years, you did not report your income or register for GST when you were obliged to, you may have to pay penalties and interest. However, by voluntarily correcting these errors, you may avoid or reduce penalties and interest.
Feel free to reach out if you would like some clarification on these rules or need some help correcting tax returns from previous years.
Taxes & the platform economy
A lot of people are making a little money on the side, driving for companies like Uber or SkiptheDishes. When you take on gigs like this, you are technically self-employed, with some specific tax obligations, particularly if you are engaged in commercial ridesharing.
Commercial Ridesharing
Commercial ridesharing is like taxi driving with your own car (for example Uber or Lyft).
What do I need to know?
As with any self-employed person, you must report all of your income, including tips, on your income tax return.
You are also eligible to claim business expenses such as fuel, administrative expenses, cell phone costs and other business-related costs.
What about GST?
Unlike other self-employment activities, if you are a commervcial rideshare driver, you must register for GST immediately. This bears repeating as it is unique for this sector. You must register for and charge GST from your very first ride.
You can also claim input tax credits for any GST you pay on your business expenses to offset the GST you collect.
Delivery services
Delivery service drivers who work independently for delivery apps like UberEats and SkipTheDishes are considered self-employed contractors with unique tax obligations.
What do I need to know?
Whether you work delivering full-time or as a side hustle, you must report all of your income, including any tips you earn, on your income tax return.
You are also eligible to claim business expenses such as fuel, administrative expenses, cell phone costs and other business-related costs.
What about GST?
If you only provide delivery services, you don’t have to register for GST until you surpass $30,000 gross over four calendar quarters (or less). (Although, you may choose to register for a GST number if you are earning less than $30,000, you are not obliged.)
But if you provide ridesharing services and delivery services, you must register for, collect, and remit GST on all fares from commercial ridesharing services.
What if I filed incorrectly?
If, in previous years, you did not report your income or register for GST when you were obliged to, you may have to pay penalties and interest. However, by voluntarily correcting these errors, you may avoid or reduce penalties and interest.
Feel free to reach out if you would like some clarification on these rules or need some help correcting tax returns from previous years.
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