How many employers out there make certain that their staff catch a lift home, if they are travelling at night? Most businesses have a policy that either requires or encourages the staffer, to catch a lift home if it’s dark, at the expense of the business.

To save money, most businesses have moved to Uber. You may need to think again.

Ordering a taxi for your staff has always been a tax deduction. You would have thought Uber was in the same category. But, from what I hear, it makes me think – perhaps not??

We are advised that the use of a vehicle, with a taxi plate, will give you the deduction. However, the use of hire cars, limos or an Uber ride has been ruled on, as a fringe benefit.

An acquaintance of mine just got hit with a $200,000 tax bill. They removed the Uber deductions for the past 4 years and the ATO has then charged him fringe benefits tax.

If you are using Uber in your business, check with your accountant.

 

This article was written by Bailey Compton, Principal Solicitor & Director at Leverage Group.

To get in touch with Bailey, please email info@leveragegroup.com.au