Uber/Skip Tax Returns

One of the most flexible job in Canada - Driving for Uber/Lyft/Skip

Driving for Uber or Lyft or Skip is one of the most flexible jobs in Canada. Whether it’s your full time job, part-time gig, or an occasional source of side income, the rules around taxes for rideshare income are quite specific. Here are the (tax) rules of the road.

The tax rules for rideshare income are quite specific.

All your earnings are taxable.
Tax by Ash recommends you to put 25% of your income aside.
You are required to have a GST/HST number from day one.
The tax implications are different for courier than for a food delivery service.

Do you deliver for an Online Food Ordering company such as Uber Eats or Skip the Dishes?

The Canada Revenue Agency (CRA) looks at being a ‘courier’ for a food delivery app and being a ‘driver’ for a ride sharing app as two different business activities, so the tax reporting requirements differ for each.

If you’re a courier, i.e. delivery for an online food ordering company, GST/HST registration is not necessary until your annual income is over $30,000.

Information required for Lyft and Uber Drivers to file taxes?

You are required to complete and submit Statement of Business or Professional Activities (Form T2125) along with your tax returns.

You will need the following information:

Annual Tax Summary from all the rideshare companies you work/worked with.
All tax-deductible expenses (Receipts, Bills and Statements)
Vehicle mileage (Beginning of the year and end of the year)
Number of Kms driven for Business and Personal use
GST/HST number