Canadians who are self-employed have slightly different tax obligations that they need to be aware of to ensure that they stay on the right side of the CRA. For instance, one difference is that while their tax return can be submitted later (e.g. their 2018 tax return was due on June 17, 2019), but any money owing on their 2018 return needed to be paid by April 30, 2019 or be subject to a late-filing penalty. Income earned from self-employment also requires you to keep good records of your business activities as they may be needed to support any tax claims you made on your return, if the CRA asks you to provide proof. It’s important to retain these records for six years.

Key Takeaways:

• Individuals need to report their income from any business they run themselves or with a partner in that year’s tax return.
• Any earned income that has no tax withheld or does not have enough tax withheld during the year, may require payment of tax by instalments throughout the year.
• Sources of income can be from rental, investment, or self-employment income, if you receive certain pension payments, or if you have income from more than one job.

“If you own a business or carry out a commercial activity, keep complete and detailed records.”

Read more: https://www.newswire.ca/news-releases/are-you-self-employed-know-your-tax-obligations-887206159.html