Bookkeeping for the self-employed in BC
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No one withholds tax for you, GST starts at a threshold you have to watch, and the year-end return is only as good as the records behind it. We keep those records.
Short answer: a self-employed person in BC, whether a sole proprietor, freelancer or consultant, files a T1 with a statement of business income, pays both halves of CPP on that income, registers for GST once taxable sales pass $30,000 over four consecutive quarters or in one quarter (taxi and ride-share drivers register whatever their size), and needs records for every expense claimed. Orbis Accounting Ltd. keeps the books monthly or quarterly, files GST if you are registered, and prepares the T1 from those books.
What is hard for the self-employed?
- Nothing is withheld. Income tax and CPP are paid with the return, and the balance is due by 30 April even though a self-employed person has until 15 June to file. The CRA can also ask for quarterly instalments, so the money has to be set aside through the year.
- The GST threshold. It is tested over four consecutive calendar quarters and in a single quarter, and one large contract can cross it.
- Business and personal money mixed in one account, which makes every expense harder to prove.
- Home office and vehicle costs, which need the business-use share worked out and recorded.
- An incorporated contractor with one client can be treated as a personal services business, which costs more tax.
What we do for a self-employed client
- Keep the books monthly or quarterly, from your bank and card statements.
- Watch the GST threshold and register you when it is reached, or earlier if it pays.
- File GST returns if you are registered.
- Prepare the T1 with the business statement and the CPP schedule at year end.
Who this fits, and who it does not
It fits sole proprietors, freelancers, consultants, tutors, designers, developers, drivers and other self-employed people in BC. It does not include personal tax planning beyond the business, such as investment or rental income, which a tax professional should handle.
Do I need to register for GST as a freelancer in BC?
Once your taxable sales pass $30,000 over four consecutive calendar quarters, or in a single quarter, yes. Taxi and ride-share drivers have to register whatever their size. You can register earlier by choice. The GST registration guide explains both tests.
How much CPP does a self-employed person pay?
Both the employee and employer shares, worked out on the T1. The self-employed CPP guide gives the current rates and limits.
Can I claim my home office and car?
The business-use share, if you keep the records. The home office and vehicle guide explains how it is worked out.
Should I incorporate?
It depends on your income and plans. The sole proprietor or corporation guide sets out the trade-offs.
When you have to register for GST →
Uber, Lyft and DoorDash drivers: GST and records →
Side hustle or business? Etsy and resale income →
The sole proprietor year-end checklist →
Home office and vehicle expenses →
Deductible business expenses →
Tell us what your business does
Tell us your trade, roughly how many transactions a month and what you need filed, and a written plan and a fixed monthly price follow within one business day.
info@orbisaccounting.ca