Self-Employed Tax Filing

Do I need to register for HST as a self-employed person?

Once your self-employment revenues exceed $30,000 in any rolling four-quarter period, HST registration is mandatory. You must start collecting HST from that point forward. Registering voluntarily before the threshold can also make sense if you have significant business expenses — you can claim input tax credits from day one, which often results in a refund in your first year. We'll advise on the right timing for your situation.

What business expenses can I deduct as a freelancer?

Any expense that is reasonable and incurred for the purpose of earning self-employment income is potentially deductible. Common deductions include home office costs (based on business-use percentage of your home), vehicle expenses (with a mileage logbook), professional software and subscriptions, equipment, professional development, professional fees (accountant, lawyer), phone and internet (business portion), and advertising. We review your full expense picture to ensure nothing is missed.

What is the filing deadline for self-employed individuals?

Self-employed Canadians and their spouses have until June 15 to file their T1 returns. However — and this is critical — any taxes owing are still due April 30. If you miss the April 30 payment deadline, CRA charges daily interest on the unpaid balance. We help you project your tax liability early so you're not scrambling to come up with a large payment in late April.

How do I handle a mix of employment and self-employment income?

Very common situation. Your T4 employment income and your self-employment income (via T2125) both go on the same T1 return. The key difference is that your employer has already withheld taxes on your T4 income, while your self-employment income has no withholding — meaning you'll likely owe additional tax at year-end. If the balance owing exceeds $3,000 in two out of the last three years, CRA will require quarterly installments going forward.