Suitable for: Anyone who is a rideshare driver
Tax Difficulty: Moderate
Airtax Experience: All users
Time to read: 2-3 minutes
If you ever decide to stop your rideshare business, there's a few key things you need to do to ensure that this business venture is closed-off correctly and that the ATO and Australian Business Register have this on record. This is not something that can be ignored, as you will still be deemed to be running a rideshare business and expected to lodge BAS. This Help Centre article will cover all of the things you need to do to ensure that you wrap-up your rideshare business correctly.
The 4-steps to closing your rideshare business:
- Make sure you’re up-to-date with your BAS lodgements: Any BAS periods that you were driving for will need to be lodged before you can close down your ridesharing business. If you’re unsure if you have any outstanding lodgements, send us an email and we will check this for you - email@example.com
- Cancel your ABN: This is a necessary step if you are no longer operating as a sole trader. However, if you have stopped rideshare driving but have maintained another business activity (e.g. freelancing, or food delivery), you will need to keep an active ABN. Don’t worry, you can always reactivate your ABN at a later date if you start sole trading again. For more information on how to cancel your ABN, click here.
- Cancel your GST registration:This step won’t be necessary if you’ve cancelled your ABN. However, if you’re still operating other business activities with a combined annual income of less than $75,000, you are not required to be registered for GST, nor lodge BAS. Your cancellation date should be effective from the last date you operated as a rideshare driver. For more information on how to cancel your GST registration, click here.
- Lodge your income tax return: This will probably be your last step. If you close down your business in the middle of a financial year, you will need to record your sole trading business information in that year’s tax return, when it is made available (including income and expenses). For more information on how to do this, click here.
If you would like peace of mind as you close out your rideshare business, you can refer to our Business Assist service and speak with a tax specialist about your obligations. For more information about this service, click here.