Canadian self-employed tax, in plain English.

Once your taxable revenue passes $30,000 over four consecutive quarters (or in a single quarter), you must register and start charging GST/HST. Below that you're a "small supplier" and registration is optional — though registering early lets you claim input tax credits on your business purchases.

As a self-employed person you pay both the employee and employer share of CPP — roughly double what an employee pays. Half of the base portion becomes a tax credit and the rest is deductible, but you do owe the full amount. LQID reserves for this on every deposit.

If your net tax owing is over $3,000 in the current year and either of the two prior years, the CRA expects quarterly installments — due March 15, June 15, September 15, and December 15. Miss them and interest accrues.

Self-employed individuals can file by June 15, but any balance owing is still due April 30 — interest starts accruing May 1. Your GST/HST return timing depends on your filing frequency (most small businesses file annually).

Common ones: home office (a simplified $2/day up to $500, or the detailed square-footage method), vehicle costs by business-use percentage, meals and entertainment at 50%, software, supplies, professional fees, and capital cost allowance on bigger purchases.

If you log it, you can deduct $0.73/km for the first 5,000 business kilometres and $0.67/km after that for 2026 — or the actual-cost method by business-use percentage. Keep a logbook either way.

Big purchases (laptops, vehicles, equipment) aren't deducted all at once — you claim Capital Cost Allowance over several years, with a "half-year rule" in year one and caps on passenger vehicles. LQID assigns the class and runs the math for you.

Sole proprietors report business income and expenses on Form T2125, filed with your personal return. LQID keeps your books mapped to it all year.