IT Contractors & Tech Consultants
Bookkeeping and tax support designed for Canadian IT contractors and technology consultants.
When you move from a T4 salary to contract income, your tax situation changes significantly. You are now responsible for tracking income, managing deductions, handling GST/HST, and planning for installments. These are not administrative details. They directly affect what you keep after tax.
Teplov CPA provides bookkeeping, tax compliance, and tax planning for IT contractors across Canada, whether you are in your first year of contracting or already operating through a corporation.
Common Situations We See
Many IT contractors contact us in one of the following situations:
– You recently began contracting and are unsure whether to incorporate.
– You have one or more T4As and possibly US clients paying in USD.
– You are not certain whether you crossed the GST/HST registration threshold.
– You are unsure how much to set aside for tax or whether installments apply.
– Your bookkeeping is inconsistent and tax season feels reactive rather than organized.
– You are incorporated but do not have structured year-round tax planning.
Our role is to provide structure, clarity, and professional judgment based on your specific income level, province, and long-term plans.
Our Services for IT Contractors
Monthly Bookkeeping
Clean books throughout the year reduce risk and improve decision-making.
We provide:
– Monthly transaction categorization
– Bank and credit card reconciliations
– GST/HST tracking and input tax credit monitoring
– Monthly financial statements
– Year-end file preparation for tax filing
Bookkeeping is delivered using Xero or QuickBooks Online, configured specifically for contract income and technology-related expenses.
Tax Compliance
We prepare and file returns accurately and on time, with a CPA who understands contractor income.
Services include:
– T1 personal income tax returns
– T2125 self-employment schedules
– T2 corporate tax returns
– GST/HST registration and periodic filings
– Quarterly installment calculations
– CRA correspondence support related to prepared filings
If you earned more than $30,000 in taxable supplies, GST/HST registration may be required. If you owed more than $3,000 in tax in a prior year, quarterly installments may apply. These obligations should be calculated before deadlines, not after.
Tax Planning for Contractors
Tax planning for IT contractors focuses on structure and timing.
Incorporation Analysis
We assess whether incorporation makes financial sense based on:
– Annual net income
– Personal cash flow needs
– Provincial tax rates
– Small business deduction eligibility
– Administrative and compliance costs
You receive a clear comparison of remaining a sole proprietor versus incorporating, based on actual numbers.
Salary and Dividend Planning
For incorporated contractors, we advise on compensation structure, including salary versus dividend planning and installment strategy.
Deduction Strategy
We ensure that deductions such as home office expenses, equipment, software subscriptions, professional development, and dues are calculated correctly and documented in accordance with CRA requirements.
Frequently Asked Questions
n many cases, services provided to non-resident clients outside Canada are zero-rated. This typically means you charge 0 percent GST/HST while still claiming input tax credits on eligible Canadian business expenses. The specific treatment depends on your contractual arrangement and residency status of the client.
Yes. CRA evaluates the working relationship based on control, ownership of tools, risk of loss, and opportunity for profit. Most genuine contractor relationships are valid. However, long-term exclusive arrangements may require review to ensure classification risk is understood.
You should retain all invoices, business expense receipts, and bank and credit card statements reconciled to your records. Home office claims require a documented calculation of workspace. Vehicle claims require a mileage log that meets CRA standards. If documentation cannot be produced, deductions may be denied.
2025 Tax Returns
The filing deadline for self-employed Canadians is June 15, 2026. Any balance owing is still due April 30, 2026.
We are currently accepting new IT contractor clients for the 2025 tax year.
Get started
Email contact@teplov.ca or use the contact form with a brief description of your situation, including:
– Approximate annual income
– Whether you are incorporated
– Whether you have US clients
– What you are trying to resolve
We typically respond within one business day.