Hello,
Can Uber driver deduct the value of the meals they eat?
I can see CRA allows that for self-employed who are foot and bicycle couriers, and rickshaw drivers. But nothing about Taxi driver, or Ride-sharing.
Thanks!
Typically, CRA says you have to eat whether you work or not. Meals are normally only allowed if you are entertaining business clients. I would expect they would be able to carry a lunch, which is what I do if I am out of the office.
There appears to be no basis for that in the act (or in any case law that I can find).
However, it appears that CRA is administratively allowing foot and bicycle couriers to claim a limited amount.
[Edit: Thanks to @regalcap below for later providing the link to Scott v the Queen re the additional “business expense” portion of additional food energy. The taxi/uber driver gets to deduct his gasoline, the foot courier the additional food portion used as fuel for business purposes]
Those foot and bicycle couriers claiming must keep, for those 8+hr shifts, “logbooks showing the days worked and the hours worked on each of these days during the tax year. The CRA may also ask for dispatch slips or other documents to support the days worked during the tax year.”
Apparently CRA may also consider: ".…document that clearly shows the extra amount of food and beverages required because of the nature of your work, and how this amount exceeds what the average person would consume in terms of both cost and quantity"
Sounds like a political wimp-out for “green” transportation to me, but there it is.
@joe.justjoe1 Thanks Joe.
That’s right. I couldn’t find any basis for that.
I have few clients (Uber drivers) used to enjoy hefty meals deductions. Not sure what basis their Accountant/Tax preparer did that.
Here’s a helpful link…I also recall a QBO guide especially for Uber drivers that I found very helpful in the past but can’t seem to locate it at the moment…
https://quickbooks.intuit.com/ca/resources/business/taxes-bookkeeping-uber-drivers/
That makes sense when you’re out of the office for a business meeting or business trip. but the same is not applicable when it’s just another day at the office.
I found the document, hope this attachment works…
Thank you. That document is very generic and doesn’t tell much, it’s more about doing marketing to qp and TurboTax.
I believe CRA should push Uber to issue T4A, be clear about what’s income/deduction and to be more clear about the vague GST/HST calculations. Everything Uber produces is very vague.
The reason foot and bicycle couriers can claim some food is because they are fueled by food calories, not gasoline. If you walk or ride a bike all day you absolutely require more food to keep you going. The only supporting stat I can think of is that bike racers who ride stage races, like the Tour de France, consume in excess of 7,000 calories per day. That is about 3 times as many calories as usual, resulting in a food bill that’s 3 times as much as usual.
1 Like
Here’s info on bike and foot couriers- it was a landmark court case that changed CRA’s policy.