Canadians who are self-employed must file their 2023 income tax and benefits returns by Monday, June 17.
The official due date is June 15, but the Canada Revenue Agency (CRA) says returns filed on or before June 17 will be considered timely because it falls on a Saturday.
The CRA issued a press release on Wednesday with details of the filing. Here’s what you need to know.
What are your tax obligations as a self-employed person?
The CRA requires Canadians who generate self-employment income from a business they operate themselves or with a partner to file a tax return every year. Anyone whose spouse or common-law partner is self-employed must also file their tax return before June 17.
Self-employment owners must pay personal income taxes, Canada Pension Plan contributions and employment insurance premiums, if eligible. Quebec is the only province that requires contributions to the Quebec Pension Plan.
‘Do not forget it register for a GST/HST account if you earn more than $30,000 per year in income. You want to make sure you get your GST/HST will return in time to avoid any penalties and interest,” the CRA reminds Canadians in its press release.
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New changes to GST/HST electronic filing starting this year also now require GST/HST registrants with a reporting period beginning in 2024 to file their returns electronically.
The CRA also notes that those with incorporated businesses are following suit different tax reporting rules.
“By filing your return, you can ensure that you receive all the benefits you may be entitled to and that the benefits you are already receiving are not interrupted,” the agency says.
Although the tax filing deadline for the self-employed is June 15 or Monday, payment was due April 30.
“If you still have not paid your taxes, we encourage you to do so as soon as possible to avoid additional interest charges on your balance owed,” the CRA says. Payments can be made online or in person.
The agency also advises Canadians to keep detailed records of all money earned and spent to accurately determine tax liability and support any deductions or credits.
It says that having this information on hand will make it easier to support your claims if the CRA decides to review your return for accuracy.
Obligations for workers in the platform and gig economy
The digital age has offered Canadians a multitude of ways to become self-employed, including through platform and gig work.
The CRA defines the platform economy as “income generated on digital platforms such as websites or mobile applications.” Examples of this include selling goods such as clothing online and influencing social media.
Canadians are required to report income earned through the platform economy, including gifts and donations.
The gig economy involves short-term contracts, freelance work or other temporary work, which can range from small tasks to highly specialized services.
“If you connect with customers through online platforms or applications (apps) such as Clickworker, Crowdsource, Fiverr, UberEats or Skip the Dishes to provide them with your services, you are generally considered self-employed rather than employed. tax purposes,” the CRA explains.
“Your work can be done anywhere because online platforms can connect businesses and independent contractors from around the world.”
If you are unsure whether you are self-employed, more details can be found online.
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