I’m looking for some general advice please. I’ve just started to deliver on a self employed basis for Uber Eats and I’m not quite 100% how to report their payments to me. Just to set the scene, I get a paid for delivering and it is calculated as follows. Pick up - fixed fee, mileage and delivery fee - fixed fee. Uber then take a fee from this. As an example and from what I can make out, I have an invoice raised on my behalf by Uber to McDonalds for £6.58. Its made up of £2.72 mi × £1.50/mi (£4.08) Pick up fee £1.40 and delivery fee £1.10. I will be paid £5.59 as Uber took a fee of £1.65 and added a “boost” of £0.66
So I think my question is (sorry for the boring detail lol) Do I set up a client as McDonalds and invoice them for £6.58. Then set up Uber as a supplier and invoice them for the £1.65 fee and add a discount for the 66p? OR can I simply create the client as Uber and invoice them for my fee of £5.59 and I’m just overcomplicating this for myself?
There doesn’t seem to be much support from Ubers sides, so I have no idea how other drivers are doing this.
Thank you in advance for any advice you can offer
Create an invoice to uber for the full amount. Create a new bank account call it uber account.
Create a new nominal call it uber fees. Create a new purchase supplier call it Uber also.
Mark the invoice as paid from the uber account. Then create a money out transaction for the fee uber have deducted and tag it to the uber supplier and use the new uber fee category.
Finally create a money out transaction for the balance and then mark it as a bank transfer and match it up to the payment you received from your normal bank account.
So as an example. Say you invoiced £6 uber took £1 and you were paid £5, you would have.
Uber bank account
Cr £6 tagged to invoicr
Dr £1 tagged to uber fees
Dr £5 tagged as a bank transfer to your bank account, linking it to the money received from uber
Thank you so much Paul, I can’t tell you how helpful that is! Feel much more confident now and its blew my brains out how genuinely helpful your advice is.
All the best!
Sorry, Paul. Just got around to revisiting this today, would you mind just having a read over when you get a chance make sure I picked this up right? Ive had some things clarified now as I was presuming some things.
They seem to pay in bulk for the trips completed Monday to Sunday, I can get “Boost” promotional payments (for busier times) and tips. I hope I’m right as it will mean I won’t have to do this for eat trip. I think I’ve cracked it following on from your advice, so…
I created the invoice for the total fare made in the week (say £50). Created the Uber account as suggested and paid the invoice raised with it. I then created money out for the fees and used the new nominal code I created. I created it as overheads, I guess that’s right. I’ve then created money in transaction for the Boost earned (say £20) and tagged it to the nominal code Commissions Received. I also did the same for the tips (say £10). Should I maybe create nominal codes for these?
Finally created money out for the balance and tagged it as a bank transfer to my business account.
Thanks again for your help!
What i would do is include tips and boost payments in the overall invoice. No need to split that part or have a separate nominal since its all taxable under income.
With regards to them paying in bulk,
Continue as I suggested first, but hold off on the money transfer tag until the balance matches what they pay.
So add invoices from Monday to Sunday, Create transactions for the fees then transfer the whole remaining balance across once the balance your left with matches what they have paid you.
So if your invoices for the week came to £200 and they took £50 in fees then paid you £150 on Sunday you would
Cr each gross invoice for monday to Sunday tag them to your invoices.
Ďr fees (can be separate or total for week tour choice)
Ďr balance transfer (making sure to note that the balance matches the payment received)
Thank you, Paul. Think I have it cracked now
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