Self-Employed Tax Return Everything You Need to Know

If you are self-employed in Canada, filing your income tax return is a crucial responsibility. Whether you are a freelancer, contractor, consultant, rideshare driver (Uber, Lyft, HOPP), delivery driver (SkipTheDishes, DoorDash, UberEats), or any other self-employed professional, the Canada Revenue Agency (CRA) requires you to report your earnings and pay the necessary taxes. TaxCan Accounting and Taxes ensures that your self-employment tax return is filed accurately and on time to avoid penalties and maximize your deductions.

Who Should File a Self-Employed Tax Return?

You are considered self-employed if you:
✔ Earn income from freelancing, consulting, or contract work.
✔ Operate a small business as a sole proprietor or in a partnership.
✔ Work as an independent contractor with no employer deducting taxes from your pay.
✔ Drive for Uber, Lyft, or other rideshare services.
✔ Deliver for Uber Eats, SkipTheDishes, DoorDash, or other gig platforms.
✔ Provide professional services such as real estate, accounting, law, healthcare, or IT consulting.

If you earn income from self-employment, you must file a tax return to report your earnings and pay income tax, Canada Pension Plan (CPP) contributions, and Goods and Services Tax (GST)/Harmonized Sales Tax (HST) if applicable.

When Should You File a Self-Employed Tax Return?

📅 Filing Deadline:

• June 15 of the following year (extended deadline for self-employed individuals).

• However, any balance owing must be paid by April 30 to avoid interest charges.

For example, for the 2024 tax year, the self-employed filing deadline is June 15, 2025, but taxes owed must be paid by April 30, 2025.

CRA Rules for Self-Employed Taxes

As a self-employed individual, you must:
✔ Report all business income and expenses using Form T2125 – Statement of Business or Professional Activities.
✔ Pay income tax on your earnings.
✔ Contribute to Canada Pension Plan (CPP) if your net self-employment income exceeds $3,500.
✔ Register and file GST/HST returns if your annual revenue exceeds $30,000.

Tax Deductions for Self-Employed Individuals

One of the key benefits of being self-employed is the ability to claim business expenses to reduce taxable income. Some common deductions include:
🔹 Home office expenses (if you work from home).
🔹 Vehicle expenses (gas, insurance, maintenance, lease payments).
🔹 Business supplies and equipment.
🔹 Marketing and advertising costs.
🔹 Professional fees (accounting, legal, consulting).
🔹 Cell phone and internet bills used for business.
🔹 Meals and travel related to business activities.

A professional tax service like TaxCan Accounting and Taxes ensures you maximize all eligible deductions while staying compliant with CRA rules.

Consequences of Failing to File a Self-Employed Tax Return

🚨 Failing to file your tax return on time can result in:
⚠ Late Filing Penalties – CRA charges 5% of the balance owing, plus 1% per month (up to 12 months). Repeat late filers may face double penalties.
⚠ Interest on Unpaid Taxes – CRA applies daily compound interest on any unpaid amounts.
⚠ Loss of Government Benefits – Failure to file may result in loss of GST/HST credits, Canada Child Benefit (CCB), and other government benefits.
⚠ Possible CRA Audit – Unreported income increases the risk of a CRA audit.
⚠ Difficulty Qualifying for Loans – Lenders require tax return proof for mortgages and loans.

File Your Self-Employment Tax Return with TaxCan Accounting and Taxes

At TaxCan Accounting and Taxes, we provide expert tax preparation for self-employed individuals, ensuring your return is filed accurately and on time while maximizing your deductions.

✔ Accurate Income Reporting – We ensure all self-employment income is reported correctly.
✔ Maximized Tax Deductions – We identify all eligible expenses to reduce your tax liability.
✔ GST/HST Filing – Assistance with GST/HST registration and filing for eligible businesses.
✔ Audit Assistance – Expert support in case of CRA reviews or audits.
✔ Fast and Secure E-Filing – We submit your return electronically (EFILE) for instant processing.

Don’t risk penalties or overpay your taxes! Contact TaxCan Accounting and Taxes today for professional and reliable tax filing services for self-employed individuals, gig workers, and independent contractors.