If you’re a driver for Uber or considering getting a job as one then the chances are you will be wondering how you manage your tax and wages.
The freedom that driving for Uber can give you is amazing and you can do this whilst doing other jobs. It is a great lifestyle choice that suits many people: 2 million people have so far signed up to drive for Uber.
But it is important to understand what is required of you in terms of Uber pay statements and the contractors vs employees relationship.
Uber Drivers Are Self Employed
The most important thing to remember is that if you drive for Uber you are self-employed.
This means you are responsible for filing your own tax forms and you are not entitled to all of the perks that you would get in a normal 9-5 job such as sick pay and paid holidays. But you are trading this for the freedom to work when and how you choose, as other self-employed people do.
Getting Your Uber Pay Statements
Like all self-employed workers, you are going to be required to declare how much you earn in any one tax year and in order to do this, you need to get hold of your pay statements from Uber.
One way of doing this is to log in to Uber.com and to find your statements that way. You can also use the mobile app but the information will not be as detailed.
Keeping track of your pay statements can be difficult and involves you finding the relevant PDF or CSV on your Uber driver account. Instead, you might want to consider using ThePayStubs.com.
Tax Deductible Expenses
You might also need to declare your income if you want to apply for a loan or a credit card if you have a bad credit card history. If you don’t have the correct sheets showing your income from Uber this can be difficult.
There can also be a need to show the expenses you incurred as a result of driving for Uber such as fuel costs and the maintenance of your car. These are legitimate business costs which you don’t have to pay tax on but you will need to proof it.
Getting Paid to Show Your Pay Stubs
Ride-sharing apps are very competitive. It’s a lucrative business and Uber isn’t actually making a profit at the moment.
There have been instances where competitors have been willing to pay Uber drivers to email them their pay stubs and vice-versa. There are pros and cons to doing this and you’ll need to way them up but this is another reason why it is important to hang onto your pay stubs.
Get on Top of Your Finances
Getting an Uber pay statement is important in making sure you are on top of your finances. You want to know how much you are being paid every week so that you can budget correctly.
You also don’t want to be caught off guard when it comes to filing your tax returns at the end of the year.
If you are interested in reading more articles about cars be sure to check out our drive section.
