Uber, DoorDash & Skip Drivers in London, Ontario: Your Complete Tax, HST & Bookkeeping Guide

You’ve been driving for Uber, DoorDash or Skip the Dishes around London. The money lands in your account every week, and it feels great. Then tax season arrives, and suddenly you owe the CRA money you didn’t plan for.

Sound familiar? You’re not alone. Every spring we meet London drivers, from Western and Fanshawe students to full-time drivers and newcomers, who are surprised by their first gig tax bill. The good news: with a few simple habits, you can keep more of what you earn and never fear a CRA letter again.

This guide explains, in plain English, how gig driver taxes work in Ontario, what you can claim, and which deadlines you can’t miss.

Are You Self-Employed? How the CRA Sees Your Gig Income

Why no tax comes off your pay

When you work a regular job, your employer takes income tax, CPP and EI off every paycheque. Gig apps don’t. In the CRA’s eyes, you are running your own small business. That means you are responsible for reporting every dollar you earn and paying the tax yourself.

This is the number one reason drivers get a surprise bill. They spend the full payout, then owe 20% or more of it back in April.

The apps now report your earnings to the CRA

Under Canada’s digital platform reporting rules, which started with the 2024 tax year, platforms like Uber and DoorDash share seller and driver income details with the CRA. If you thought small amounts would go unnoticed, that is no longer realistic. Report everything, and you have nothing to worry about.

Do You Need to Register for HST? Rideshare vs Food Delivery

This is where most London drivers get confused, because the rules are different depending on what you deliver.

Uber and Lyft rideshare: register before your first ride

If you drive passengers, the CRA treats you like a taxi business. You must register for a GST/HST number before you give your first paid ride, no matter how little you earn. The usual $30,000 small-supplier exemption does not apply to rideshare drivers.

DoorDash, Skip and Uber Eats: the $30,000 rule

If you only deliver food or packages, you are a “small supplier” until your total taxable sales pass $30,000 across four calendar quarters in a row. Below that, HST registration is optional. Above it, registration is required.

	Rideshare (Uber, Lyft)	Food delivery (DoorDash, Skip, Uber Eats)
When to register for HST	Before your first paid ride	Once sales pass $30,000 in four quarters
Small-supplier exemption	No	Yes
HST rate in Ontario	13%	13%
Can you claim HST back on expenses?	Yes, as input tax credits	Yes, once registered

Filing HST and the Quick Method

Once registered, you file HST returns (usually annually for drivers) and can claim back the HST you paid on business costs like gas and repairs. Some drivers save money with the CRA’s Quick Method, a simplified calculation. An accountant can run both options and tell you which one leaves more in your pocket.

Tax Deductions You Can Claim as a Gig Driver

This is the good part. Because you’re self-employed, you can deduct reasonable costs of earning your income.

Vehicle expenses

Your car is your biggest expense, and your biggest deduction. You can claim the business-use share of:

• Gas and oil changes
• Insurance (make sure you have rideshare coverage)
• Repairs, tires and maintenance
• Licence and registration
• Lease payments, or depreciation (capital cost allowance) if you own the car
• Loan interest on the car

Keep a mileage logbook

You can only claim the percentage of your driving that was for business. If you drove 20,000 km this year and 12,000 km were for deliveries or rides, you can claim 60% of your car costs. A simple mileage app makes this easy. Without a log, the CRA can deny your vehicle claim completely.

Other common deductions

• Cell phone and data plan (business-use share)
• Insulated delivery bags and phone mounts
• Platform service fees and commissions
• Car washes and cleaning supplies for passenger vehicles
• Accounting and tax preparation fees

What NOT to claim

Claiming 100% of your car use, personal meals, or costs without receipts are red flags that can lead to a CRA review. Be honest and keep proof.

How to File: Form T2125 Step by Step

Gig income goes on Form T2125, Statement of Business or Professional Activities, which you file with your regular T1 personal tax return.

1. Add up your gross income from each app, using their annual tax summaries.
2. List your expenses by category, using the business-use percentage for your vehicle.
3. Work out your net profit (income minus expenses).
4. Pay both the employee and employer share of CPP on that profit, since no employer is paying it for you.
5. Combine everything with any T4 job income, student income or other slips on your return.

Key Deadlines London Drivers Can’t Miss

Deadline	What’s due
April 30	Pay any tax you owe for the previous year (interest starts after this date)
June 15	File your return if you or your spouse are self-employed
Annual HST due date	File and pay HST (for most annual filers, same timing as your income tax)
March 15, June 15, Sept 15, Dec 15	Quarterly instalments, if your tax owing was over $3,000

A Simple 10-Minute Weekly Bookkeeping System

You don’t need to be an accountant to keep clean records. Try this:

1. Use a separate bank account or card only for driving income and expenses.
2. Snap a photo of every receipt with a receipt app the same day.
3. Track mileage automatically with a GPS mileage app.
4. Download your app statements once a month and save them in one folder.
5. Set aside 25% of each payout in a savings account for taxes and HST.

5 Costly Mistakes We See London Gig Drivers Make

1. Not registering for HST as a rideshare driver.
2. No mileage log, so vehicle claims get denied.
3. Mixing personal and business spending in one account.
4. Ignoring CRA letters, which only makes penalties grow.
5. Using a “cash tax preparer” who doesn’t sign or stand behind the return.

Behind on Your Filings or Got a CRA Letter? What to Do Now

Don’t panic, and don’t ignore it. You can file past returns, set up a payment arrangement with the CRA, and in some cases apply for relief from penalties through the Voluntary Disclosures Program. Acting before the CRA contacts you usually leads to a much better outcome.

How Multitax Helps London Gig Drivers

Multitax works with Uber, DoorDash and Skip drivers across London, Ontario every day. We can:

• Register you for HST and file your returns on time
• Prepare your T2125 and personal return with every deduction you’re entitled to
• Catch up on missed years and deal with the CRA for you
• Explain everything in English, Hindi or Punjabi

Frequently Asked Questions