Who We Serve
IT Contractors and Tech Consultants
Bookkeeping and tax support designed for Canadian IT contractors and technology consultants. Moving from T4 employment to contract income changes the structure of your tax obligations. You become responsible for GST/HST registration, quarterly instalments, and tracking deductible expenses throughout the year. We work with IT contractors at every stage, from first-year contracting to managing a corporation with multiple clients.
Common situations we see
- Recently begun contracting, uncertain about whether to incorporate
- Multiple T4As and possibly revenue from US clients paid in USD
- Uncertain about GST/HST registration threshold and timing
- Unclear on tax set-asides and whether quarterly instalments apply
- Inconsistent bookkeeping handled reactively before tax season
- Incorporated without structured year-round tax planning
We provide structure, clarity, and professional judgment based on your specific income level, province, and long-term plans.
Monthly Bookkeeping
Clean books throughout the year reduce audit risk and improve decision-making. Not a catch-up before tax season, but a consistent monthly process.
- Monthly transaction categorization for all bank and credit accounts
- Bank and credit card reconciliations
- GST/HST tracking and input tax credit monitoring
- Monthly financial statements
- Year-end file preparation for tax filing
- Setup and maintenance in Xero or QuickBooks Online
Tax Compliance
Returns prepared and filed accurately and on time, by a CPA who understands contractor income structures.
- T1 personal income tax return with T2125 self-employment schedule
- T2 corporate tax return if incorporated
- GST/HST registration and periodic filings
- Quarterly instalment calculations
- CRA correspondence support
GST/HST registration is required when total revenues from taxable supplies exceed $30,000 in a rolling 12-month period. Quarterly instalments are required when net tax owing exceeds $3,000.
Tax Planning
Tax planning for IT contractors focuses on structure and timing. Decisions made during the year have more impact than adjustments made at filing.
- Incorporation analysis: income level, cash flow needs, provincial rates, small business deduction eligibility, and ongoing compliance costs
- Salary and dividend mix planning for incorporated contractors
- Deduction strategy for home office, equipment, software, professional development, and dues
Common questions
- Do I charge GST/HST to my US clients?
- Services to non-resident clients outside Canada often qualify as zero-rated exports. You may charge 0% GST/HST while still claiming input tax credits on your business expenses. The treatment depends on the contractual arrangement and the residency of the client.
- Can CRA decide I was actually an employee?
- Yes. CRA evaluates worker classification based on control over work, ownership of tools, risk of loss, and opportunity for profit. Genuine arm's-length contracting arrangements are typically valid. Exclusive arrangements with a single client where the company directs your work may warrant review.
- What records do I need to keep?
- Invoices, expense receipts, and reconciled bank and credit card statements for all business accounts. Home office claims require a documented area calculation. Vehicle claims require a CRA-standard mileage log with date, destination, purpose, and kilometres. Deductions without supporting documentation may be denied on audit.
Work with us
Self-employed in Canada with contract income? Use the contact form to describe your situation and we will follow up directly.
Contact Teplov CPA