As a rideshare driver in New Zealand, you can claim several expenses on your tax return to reduce your taxable income. These expenses are classified as business expenses and can be deducted from your gross earnings, resulting in a lower tax liability. In this article, we will provide you with a comprehensive guide on the expenses that you can claim as a rideshare driver according to tax laws in New Zealand.
Vehicle Expenses As a rideshare driver, your vehicle is your primary source of income, and you can claim several expenses related to it. These expenses include:
Fuel costs: You can claim the cost of fuel used for business purposes. To claim fuel costs, you must keep accurate records of the distance travelled for business purposes.
Maintenance and repairs: You can claim expenses related to maintaining and repairing your vehicle, such as oil changes, new tyres, or brake replacements.
Registration and licensing: You can claim the cost of registering and licensing your vehicle.
Insurance: You can claim the cost of insuring your vehicle for business purposes.
Depreciation: You can claim a deduction for the depreciation of your vehicle. This deduction is based on the cost of the vehicle and the number of years it is expected to last.
Interest Expense: you can claim interest charged as an expense for any business loans you may have.
Communication Expenses (Phone)
As a rideshare driver, you may incur communication expenses, such as phone calls and internet charges. You can claim a portion of these expenses if they are incurred for business purposes.
Cleaning Expenses
You may incur cleaning expenses to keep your vehicle clean and tidy for passengers. You can claim the cost of these expenses if they are incurred for business purposes.
Other Expenses Other expenses that you can claim as a rideshare driver include:
Parking fees: You can claim the cost of parking fees that are incurred while working.
Toll fees: You can claim the cost of toll fees that are incurred while working.
Fees and commissions: You can claim the fees and commissions charged by the rideshare platform.
Professional fees: You can claim the cost of professional fees incurred for business purposes, such as accounting Fees
Training costs: You can claim the cost of training that is directly related to your work as a rideshare driver.
It is essential to keep accurate records of all your expenses throughout the year to claim them on your tax return. You should keep receipts, invoices, and other documentation that support your claims.
If you need help with your taxes please contact us on 021449298