Claiming auto expenses is beneficial to reducing your taxable business income. Auto expenses include fuel and oil, license and registration, maintenance and repair, insurance, car washes, parking, tolls, interest paid on an auto loan and leasing costs. Be sure not to miss out on these costly expenses by being sure to save every receipt.
Why should you consider buying into an RRSPs (Registered Retirement Savings Plan)?
It is a great way to save on taxes! Remember, this program is a tax deferral program, meaning that when you withdraw the funds at a later date, it is expected that you will be in a lower tax bracket. Once your money is in the plan it can grow and grow (thank you compound interest!) and again, you will only pay tax on the funds as you withdraw them.
Did you know that if you owe more than $3000 in HST you will be required to make instalment payments going forward?
For an annual filer with HST tax owing $3,000 or more for your previous fiscal year, you will need to pay quarterly instalments in the current fiscal year.
For businesses with branches or divisions that file separate returns, the $3,000 threshold limit applies to the total net tax for the whole business, including all branches and divisions.
Instalment payments are due within one month after the end of each fiscal quarter. The instalment payment due dates will be as follows: April 30th, July 31st, October 31st, and January 31st, 2024.
Please make sure that the instalment payments are applied to 2023 tax year.
If you do not make these instalment payments and you have a balance owing for your 2023 HST Return, the CRA will charge you “instalment interest”.
To make your HST instalment payments, there are a few options:
You can use Form RC160, Remittance Voucher – Interim Payments. This form is only available in paper format due to technical requirements. For more information on how to request this form, please click HERE.
You can make instalments electronically through your financial institute’s online or telephone banking. You do not need the remittance voucher to pay online.
You can also make instalments electronically by using My Payment, which allows you to make payments online from your account at participating Canadian financial institutions.
You can authorize the CRA to withdraw a pre-determined amount from your bank on specific dates. To authorize this, please use My Business Account.