self employed - declaring taxes
- Thread starter stainless
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I am self employed and declare all my income. You don't want tax trouble dude. They are like elephants and jilted woman...they never forget and hound you till death....just pay and live worry free......that my advise
Lots of expenses you can deduct from income - home office, office supplies, percentage use of car for business etc. etc.
You may want to consider incorporating, but you should talk to a good accountant or tax lawyer first. I have been in business for 19 years and never did see an advantage in doing so, but your situation may be different.
You may want to consider incorporating, but you should talk to a good accountant or tax lawyer first. I have been in business for 19 years and never did see an advantage in doing so, but your situation may be different.
stainless said:
you declare all your income
what does being self-employed got to do with not declaring income
Several of my buddies went the self-employed route. One of them fudged his taxes and took it up the ass from the taxman (and is still taking it). The other meticulously recorded every last penny earned (actually, his wife did it) and the taxmen were so astonished that they didn't even finish their audit and haven't been heard from since. In fact, they couldn't believed he was reporting things down to the last penny.
With RevCan, it's all about trust. Once you give them a reason not to trust you, they'll be all over you for many years to come. And, to be honest, I'm glad about that; there are too many people out there not paying what they owe, leaving honest tax payers to make up the difference.
With RevCan, it's all about trust. Once you give them a reason not to trust you, they'll be all over you for many years to come. And, to be honest, I'm glad about that; there are too many people out there not paying what they owe, leaving honest tax payers to make up the difference.
F
figjam4
The main advantage of being incorporated is the low tax rates on CCPC's ( Canadian Controlled Private Corporation ). It is currently at 19% and plans are that this will be reduced over the next 5 years. The cons includes the high cost of preparing tax returns. So as a rule of thumb, if you take all the money out for personal use then there is no real advantage of incorporating, if you do not need all the income for personal use and can afford to leave money in the company, then you might want to think about it.
not really since any loan will usually need a personal gurantee
the corporate sheild can be broken...it just cost more money
there's also the need to pass the employed vs self-employed test which is taken on a case by case basis
also if self-employed....make sure to pay instalments or penalties will be incurred
also you can't write off payments to hobo's for oral gratification
the corporate sheild can be broken...it just cost more money
there's also the need to pass the employed vs self-employed test which is taken on a case by case basis
also if self-employed....make sure to pay instalments or penalties will be incurred
also you can't write off payments to hobo's for oral gratification
See a tax accountant if this is going to be your first time. The accountant can tell you want you can and cannot declare. Accounts tend to make conservative calculations, and can tell you if you are paying too much or too little.
If you underdeclare, you run the risk of being audited. If you overpay, you can reclaim some of the money back, or apply it to your next quarter.
You also have to decide if you want to do the regular method and keep track of your expenses, or do the 'quick method'.
Its good to hire an accountant for the first time. They may charge a bit, but it will save you the pain and hassle. Besides, you can claim GST on accounting services.
The basic rule of thumb of self-employed people is to don't underpay, keep all your receipts, don't overexpense and whatever generated income you receive, set aside 1/3 of it for taxes.
If you underdeclare, you run the risk of being audited. If you overpay, you can reclaim some of the money back, or apply it to your next quarter.
You also have to decide if you want to do the regular method and keep track of your expenses, or do the 'quick method'.
Its good to hire an accountant for the first time. They may charge a bit, but it will save you the pain and hassle. Besides, you can claim GST on accounting services.
The basic rule of thumb of self-employed people is to don't underpay, keep all your receipts, don't overexpense and whatever generated income you receive, set aside 1/3 of it for taxes.
stainless said:
If you are incorporating, you have no choice but to hire an accounting professional to do your books - you are not allowed to do it yourself!
Do a google - there's tons of info on government websites with all the forms you could imagine.
What type of business are you in? This along with your revenues will play a big factor in deciding which type of business to setup.
Boyscout352 said:
Any accountant that would tell you not to declare your income would loose their license.
An accountant should help you pay the least amount of tax possible and not to inform you the chances of being audited b/c you did not declare income earned
Re: Re: self employed - declaring taxes
yes you can
only if you require 'assurance' (audit and the other one), you must hire the services of an accountant/auditor
to incorp - just get a lawyer to do it through internet
you can bookkeep yourself
you can file tax return yourself
of course you might have no clue what you are doing, but you can do it yourself
i_am_good said:
yes you can
only if you require 'assurance' (audit and the other one), you must hire the services of an accountant/auditor
to incorp - just get a lawyer to do it through internet
you can bookkeep yourself
you can file tax return yourself
of course you might have no clue what you are doing, but you can do it yourself
choose wisely when it comes to accountants, because they can make you or break you. As for "must have an accountant when incorporating", i dont think so, as all the accountants when doing your return will have you sign a paper that they did your books based on your records, so a better book keeper would be suggeted.
Re: Re: self employed - declaring taxes
Hey wrong hole, could not agree more. Everybody has to pay their fair share. If you access universal health care, send your kids to public school, drive on public roads, or utilize public transportation, you are obligated to contribute. I have been self employed for eight years and own an incorperated business. I have no sympathy for people who purposely evade paying taxes and are caught. I've payed penalties on several occasions now, stupidity and/or ignorance on my part, usefull lessons. My advice is find a good accountant, keep every recipt, identify as many tax deductable expenses as possible and have a solid business plan. These are beer induced musing from Dabbler, no liability attached.......
wrong hole said:
Hey wrong hole, could not agree more. Everybody has to pay their fair share. If you access universal health care, send your kids to public school, drive on public roads, or utilize public transportation, you are obligated to contribute. I have been self employed for eight years and own an incorperated business. I have no sympathy for people who purposely evade paying taxes and are caught. I've payed penalties on several occasions now, stupidity and/or ignorance on my part, usefull lessons. My advice is find a good accountant, keep every recipt, identify as many tax deductable expenses as possible and have a solid business plan. These are beer induced musing from Dabbler, no liability attached.......
wooly110
Active member
Unless someone out here is a tax consultant, we're not going to be able to give you the advice you need - except one.
Go see a tax consultant about what the best thing to do for your situation.
Go see a tax consultant about what the best thing to do for your situation.
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