The best evidence to support the use of a vehicle is an accurate logbook of business travel maintained for the entire year, showing for each business trip, the destination, the reason for the trip and the distance covered.
You can deduct motor vehicle expenses only when they are reasonable and you have receipts to support them. To get the full benefit of your claim for each vehicle, keep a record of the total kilometres you drive and the kilometres you drive to earn business income.
For each business trip, keep a log listing the following:
Record the odometer reading of each vehicle at the start and end of the fiscal period.
If you change motor vehicles during the fiscal period, record the dates of the changes and the odometer reading when you buy, sell, or trade the vehicle.
Motor Vehicle Records
Did you know it's actually less expensive to hire an outside bookkeeper than hiring another employee? It's true!
The Canada Revenue Agency offers E-Services for Businesses, online services to make it faster and easier to handle your company's tax matters. You, your employee, or your representative can file, pay, and access detailed information about your tax accounts - all online, all at your fingertips.
Expenses (BE AWARE)
The CRA does not consider clothing to be a business expense, except,
1) when it is a distinctive uniform that must be worn while carrying out employment duties,
2) when it is special clothing (including safety footwear and safety glasses) designed to protect from hazards associated with the employment
Uniforms such as shirts with the company name on them, can be deducted but not regular work clothes. The rule is that if the clothing is suitable for wear outside of work, even if you only wear it to work, it isn't deductible.
Meals and Entertainment expenses are an area frequently flagged for audit by the Canada Revenue Agency.
The amount you claim must be reasonable and for the purpose of earning Income and not be personal in nature. You can’t deduct things like your grocery bill or lunch just because you run a business, but you can deduct things that relate to your business, such as dinner with a potential client to discuss a business deal.
Personal meals can only be claimed when they relate to business income, such as meals purchased while away on business.
Be ready to explain exactly how your entertainment expenses related to your business income, including a list of who attended the event, what client matter or income it relates to, and contact details to prove who attended.
If you do not have adequate supporting documents, your expenses will be disallowed and your taxable income increased as the burden is on your to support your claim.
March 1, 2019 is the deadline for contributing to an RRSP for the 2018 tax year.
December 31 of the year you turn 71 years of age is the last day you can contribute to your own RRSP. For more information, follow this link. RRSP options at age 71
When to register for GST/HST?
Generally, you do not have to register for GST/HST if your worldwide revenues are $30,000 or less as you are considered a small supplier.
Whether you are required to register or not, you can register voluntarily.
If you choose not to register, you cannot charge GST/HST to your customers and the GST/HST you pay on your business purchases becomes a cost for which you cannot claim ITCs (Input Tax Credits).
There is a different HST rate per province.
Beware of Fraudulent communications
Occasionally, taxpayers may receive,
either by telephone, mail, text message or
email, a fraudulent communication that
claims to be from the Canada Revenue
Agency (CRA). In all these cases, the
communication requests personal
information, such as a social insurance,
credit card, bank account, and/or passport
numbers, from the taxpayer.
These fraudulent communications typically
insist that this personal information is
needed so that the taxpayer can receive a refund or benefit payment. Other communications urge taxpayers to visit a fake CRA website where the taxpayer is then asked to verify their identity by entering personal information. These are SCAMS and taxpayers should NEVER respond to these fraudulent communications, or click on any of the links provided.
To better equip taxpayers to identify those communications that do not come from the CRA, the following general guidelines are provided.
If you have signed up for online mail (available through MyAccount, My Business Account and Represent a Client), the CRA will do the following:
The CRA will send a registration confirmation email to the address provided once an individual or business has registered for the online mail service.
The CRA will also send an email to the address provided to notify you when new online mail is available to view in the CRA’s secure online services portal.
When in doubt, ask yourself the following:
The CRA will continue to post notifications of fraudulent communications as we become aware of them and encourages you to check our Web site should you have concerns.
To see examples of these scams and find out how you can protect yourself, examples of fraudulent communications, and protect yourself against fraud.
If you have responded to a fraudulent communication and have become a victim of fraud, please contact the Royal Canadian Mounted Police's Canadian Anti-Fraud Centre by email at firstname.lastname@example.org or call 1-888-495-8501.
If you have any questions, or comments, please contact us, and we will reply as soon as possible.