Are You a Sole Proprietor or Freelancer? Check Out These Tax Tips!
Did you recently start a side hustle, become your own boss, or are seeking to launch a business idea that is truly yours? If so, you likely fit into the category of being self-employed or a freelancer!
There are many perks to being your own boss which, of course, don’t come without their own set of costs. You may now be facing higher taxes or the additional work of maintaining records. Hence, it’s imperative to be well versed and proactive in understanding the tax compliance rules established by the Canada Revenue Agency (CRA). It can ensure you are maximizing on deductions and enable you to form a structure to keep track of records (if you are ever audited by the CRA).
Here are some important tips:
- Keep track of documentation and save for six years
- Set aside a budget for income taxes and retirement savings
- Keep track of your income tax deadlines and arrange CRA payments
- Business use of home expenses
- Motor vehicle claims
- GST/HST registration
- Consider incorporating your business
Read more from Business Link here.