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    Start here: I just went self-employed

    You are now a sole proprietor in the CRA's eyes -- your business income goes on Form T2125 with your personal T1. Here is the order to get your tax house in order in your first year.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →

    1. 1

      Get the first-year basics right

      What changes when you go self-employed: reporting on T2125, the June 15 filing deadline (balance still due April 30), and setting aside tax as you earn.

      First-year self-employed guide →
    2. 2

      Track your business expenses

      What you can deduct against business income, what needs receipts, and what the CRA disallows. Getting this right is the single biggest lever on your tax bill.

      Business expenses guide →
    3. 3

      Know your GST/HST line

      You must register once taxable revenue passes $30,000 over four consecutive quarters -- and charge GST/HST from that point, including on the sale that tips you over.

      GST/HST guide →
    4. 4

      Claim CCA on tools and equipment

      Capital purchases (tools, computer, vehicle) are deducted over time via capital cost allowance, by class -- not all at once.

      CCA classes reference →
    5. 5

      Plan CPP and instalments

      You pay both halves of CPP on net self-employment income, and if you owe more than $3,000 you move onto quarterly instalments the following year.

      Instalments guide →

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