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Q: Do I need an accountant if I’m self-employed in Canada?
Q: Do I need an accountant if I’m self-employed in Canada?
A: While you can file your own taxes, an accountant helps maximize deductions, file GST/HST, and avoid CRA penalties.
Q: What expenses can I write off as a small business owner?
Q: What expenses can I write off as a small business owner?
A: Common deductions include home office expenses, vehicle costs, supplies, advertising, and business meals, provided they are business-related.
Q: How do Uber drivers report income on their taxes?
Q: How do Uber drivers report income on their taxes?
A: Uber drivers report earnings on Form T2125 as self-employed income, and may deduct vehicle, gas, maintenance, and cell phone expenses.
Q: When are GST/HST payments due in Canada?
Q: When are GST/HST payments due in Canada?
A: Most small businesses remit GST/HST annually, but depending on revenue, some must file quarterly or monthly.
Q: Can daycare owners write off home expenses?
Q: Can daycare owners write off home expenses?
A: Yes, daycare owners may deduct a portion of home utilities, rent, insurance, and supplies if used for the daycare business.
Q: Do farmers have to charge HST on their sales?
Q: Do farmers have to charge HST on their sales?
A: Farmers must register and charge HST if their revenue exceeds $30,000 annually, but they may qualify for special agricultural tax credits.
Q: What happens if I miss a CRA tax deadline?
Q: What happens if I miss a CRA tax deadline?
A: Missing a deadline may result in interest and penalties; it’s best to file as soon as possible and arrange a payment plan if needed.
Q: How do I file GST/HST as a sole proprietor?
A: First, register for a GST/HST number with the CRA. Collect HST on taxable sales, track it separately, and file your return either annually, quarterly, or monthly depending on your revenue.
Q: What’s the difference between a bookkeeper and an accountant?
Q: What’s the difference between a bookkeeper and an accountant?
A: A bookkeeper records daily transactions and keeps financial records organized, while an accountant analyzes financial data, prepares tax returns, provides advice, and ensures compliance.
Q: What tax deductions can truck drivers claim?
Q: What tax deductions can truck drivers claim?
A: Truck drivers can deduct fuel, maintenance, vehicle insurance, lodging, meals (per diem), and other business-related expenses used for earning income.
Q: What records should business owners keep for taxes?
Q: What records should business owners keep for taxes?
A: Keep invoices, receipts, contracts, mileage logs, bank statements, and expense records — all supporting your income and deductions in case of CRA review.
Q: How do I register for a business number in Canada?
A: Go to the CRA Business Registration Online, provide your business type, name, and owner info, and you’ll receive a unique 9-digit business number for tax purposes.
Q: Can I change from sole proprietorship to corporation later?
Q: Can I change from sole proprietorship to corporation later?
A: Yes, you can incorporate at any time. Incorporation creates a separate legal entity, which may offer tax benefits and liability protection, but requires new registration, accounts, and CRA reporting.
Q: How do I set up payroll for my small business?
Q: How do I set up payroll for my small business?
A: Register for a CRA payroll program account, calculate employee deductions (CPP, EI, income tax), pay employees, and remit these amounts to the CRA regularly. Keep proper records of pay stubs and remittances.
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