Canadian freelancer here. What do I need to know about taxes?
March 8, 2014 6:03 AM Subscribe
I've just signed on with a couple of online firms that have a team of freelancers and then assign work to them. What do I need to know about taxes?
posted by synecdoche to Work & Money (5 answers total) 4 users marked this as a favorite
I am in Ontario.
I am not currently sure how much money this will lead to but I assume I should be saving a percentage of my paycheque for taxes at the end of the year. How much? 40%? Do I need to account for GST and HST?
I'm also not sure if the fact that I am working for these companies makes a difference in my status. I'm not completely freelance in that I am out there hustling for my own gigs, but as neither of these companies are based in Canada they won't be deducting taxes off of my paycheque.
What should I be doing in terms of bookkeeping? What information do I need to have available? Again, I know that I should keep all of my invoices and any expenses, but what am I likely to forget here?
I am also employed full-time at a regular job day job that does deduct all the appropriate taxes and all that. Does that affect anything? Should I be taking steps to keep the income from my day job and my freelancing work separate?
I don't have a proper home office or anything like that. I just work on my laptop wherever. What deductions should I keep track of?
Finally, is there anything else I don't know? What mistakes do first-time freelancers in like situations make? For what it's worth I do have an accountant but I still want to be prepared.