24 June 2022 3:02

Self employed as IT consultant and as massage therapist: Do I need 2 HST numbers?

Do you need a GST number if you are self-employed?

If you’re self-employed and your total revenue from the sale of taxable goods and services is over $30,000 ($50,000 for public service bodies) in a calendar quarter or in any four previous calendar quarters, you must register for a GST/HST number.

Do I have to charge HST if I have an HST number?

You have to charge GST/HST on the sale that put you over the $30,000 limit, and on any sales after that, even if you haven’t registered yet. You’ll have 29 days to register for a GST/HST number with the government from the day of that sale.

Is there HST on massage therapy in Ontario?

As many of you know, massage therapists are one of the only regulated health professionals required to charge HST/GST. Chiropractors, physiotherapists and naturopaths are all tax exempt. That means their patients’ health care dollars can be targeted to receiving much-needed health care instead of paying a tax.

How do I file HST if self-employed?

If it’s time (or past time) for you to register for the GST/HST, the good news is that it’s easy to do. You can call CRA’s business inquiries line at 1-800-959-5525 and do it in five minutes on the phone. You’ll actually get your GST/HST number on the spot.

Do you charge HST on consulting services?

The simple answer is no! In Canada, the Canada Revenue Agency deems the place of supply for services to be the location that your client is based even if you perform the work remotely (in Canada).

Do you need a business number to be self-employed?

When Do You Need a Business Number? You need a Business Number (BN) if you are a Sole Proprietor or in a Partnership and you require what the CRA refers to as “Program Accounts”.

Do I need an HST number for my small business?

Who needs to register for a GST/HST number? In short, sole proprietors, contractors, consultants, small business owners and entrepreneurs with gross sales or revenues in excess of $30,000 or more in a single quarter or cumulatively over four quarters (a calendar year) must register for a GST/HST account.

How much can you earn self-employed before paying tax Canada?

In Canada, the first $13,808 of income earned is tax-free for all individuals – employed or self-employed. This is the basic personal amount. Each year, the CRA adjusts the basic personal amount. For 2021, it is $13,808.

Is HST number same as business number?

A GST/HST account number is part of a business number (BN). If you don’t have a BN yet, you will receive one when you register for your GST/HST account.

How do I get a GST number for my consultant?

Documents required for GST registration

  1. Your photograph.
  2. Copy of your PAN and Aadhaar card.
  3. Identity and address proof.
  4. Latest bank account statement or cancelled cheque.
  5. Your digital signature.
  6. Electricity or telephone bill.
  7. The rental agreement for office premises.
  8. No objection certificate.

What services are exempt from HST?

Exempt supplies

  • a sale of housing that was last used by an individual as a place of residence.
  • long-term rentals of residential accommodation (of one month or more) and residential condominium fees.
  • most health, medical, and dental services performed by licensed physicians or dentists for medical reasons.

Do independent contractors pay HST?

You do not charge or collect GST or HST on your income. You are subject to tax on most employment benefits. As an independent contractor you generally will not receive such benefits.

What is the difference between independent contractor and self-employed?

Becoming an independent contractor is one of the many ways to be classified as self-employed. By definition, an independent contractor provides work or services on a contractual basis, whereas, self-employment is simply the act of earning money without operating within an employee-employer relationship.

How much should I set aside for taxes as an independent contractor?

25% to 30%

You should plan to set aside 25% to 30% of your taxable freelance income to pay both quarterly taxes and any additional tax that you owe when you file your taxes in April. Freelancers must budget for both income tax and FICA taxes. You can use IRS Form 1040-ES to calculate your estimated tax payments.

How do I find my HST number for a sole proprietorship?

Sole Proprietorships can obtain their GST/HST number by requesting it directly from the CRA. The CRA Small Business Team can be reached at 1-800-959-5525. This service is free of charge. Note: After you register, you must begin charging GST/HST to your clients.

How do I pay myself as a sole proprietorship?

In general, a sole proprietor can take money out of their business bank account at any time and use that money to pay themselves. If the business is profitable, the money in your account is considered your ownership equity and is the difference between your business assets and liabilities.

Can I use my personal bank account for sole proprietorship?

Can I use a personal bank account for a sole proprietorship? Technically the answer is yes. There is no legal requirement for a sole proprietor to have a separate account for business.

How do I pay myself as a sole proprietor in Canada?

As a sole proprietor, you may have to pay your income tax by payments called instalments. You may also need to make instalment payments for CPP contributions on your own income. For more information, go to Paying your income tax by instalments.

What is the difference between self-employed and sole proprietor?

A sole proprietor is self-employed because they operate their own business. When you are self-employed, you do not work for an employer that pays a consistent wage or salary but rather you earn income by contracting with and providing goods or services to various clients.

What is the most tax efficient way to pay yourself?

Perhaps the best way to pay yourself for these three business structures is through the owner’s draw, distributing funds as needed throughout the year as your business grows. Owner’s draws are funds transfers, not personal income or wages, which means they’re not taxed as such.