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In recent years, many Canadians have discovered their inner entrepreneur, resulting in thousands of new side hustles and small businesses. According to a survey conducted by Angus Reid for Intuit Quickbooks in mid-2022, one in four side hustles and small businesses was started during the pandemic. And by the end of 2022, two in five Canadians were planning to pursue a side hustle or increase their hours, according to a survey conducted by Accenture.
If you’re looking to earn some extra income, read the MoneySense articles below for practical tips, tax information and inspiration for starting your own side hustle.
Starting a sideline or small business
- How to make more money in Canada: 6 side hustle ideas
- The basics for starting your own business
- Can you make money with social media?
- How to make money selling online
- How much money can you make driving for Uber?
- Ways to make extra money during COVID-19
Management of part-time finances
- Incorporated Entrepreneurs: Should You Pay Yourself a Salary?
- How the self-employed can organize themselves
- Getting paid with Bitcoin: What you need to know
- What you should know about the cryptocurrency tax in Canada
- How will you be taxed if you sell a small business?
Self Employed Taxes in Canada
- self-employed? Learn how to file taxes for a side hustle
- Tax traps for the self-employed
- Make your sideline audit-proof
- Tax brackets in Canada are based on annual income and are also broken down by province
Inspiration for Entrepreneurs
- MYNC franchise founder Nathalie Smith on how she turned a passion project into her full-time job
- The advice that journalist Renée Sylvestre-Williams would have liked in her twenties and older
- Erin Bury on leaving a steady job for a risky paycheck and investing in her 20s and beyond
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Frequently asked questions about side hustles
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“@type”: “Question”,
“name”: “What is the self-employed tax filing deadline?”,
“acceptedAnswer”: {
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“text”: “The deadline to file your income tax return if you’re self-employed, or your spouse or common-law partner is self-employed, is June 15, 2023. Note, however, that if you owe taxes, the deadline to pay was May 1, 2023. (Usually it is April 30, but this year it fell on a weekend.)”
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You must report any business income on your tax return. The Canada Revenue Agency (CRA) says that business income “includes money you earn from a profession, trade, manufacture or undertaking of any kind, an adventure or concern in the nature of trade, or any other activity you carry on for profit and there is evidence to support that intention.” Business income doesn’t include employment income (wages and salaries from employers). ”
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“@type”: “Question”,
“name”: “What happens if you don’t report self-employment income?”,
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“text”: “If you repeatedly fail to report all your sources of income, you may have to pay a penalty (federal and provincial/territorial). Learn more about false reporting and failure to report income. If you want to fix an omission from previous years, you can apply to the CRA’s Voluntary Disclosure Program—it’s better to be pro-active than to wait for the tax people to come calling. The same is true if you haven’t filed a tax return. Catch up soon to minimize penalties and interest charges.”
}
},
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“@type”: “Question”,
“name”: “When does a side hustle have to start charging sales tax?”,
“acceptedAnswer”: {
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“text”: “If your side hustle generates sales of $30,000 or more (before expenses) within a calendar quarter or over four consecutive quarters (not necessarily a calendar year), you will have to register for a GST/HST number.”
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“name”: “What self-employed tax deductions are there in Canada?”,
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“text”: “Self-employed individuals can deduct a wide range of business expenses, such as business startup costs, business-use-of-home expenses, insurance, legal fees, interest and bank charges, office supplies, telephone and utilities, property tax, advertising costs and more. See the CRA’s list of eligible operating expenses.”
}
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“name”: “Are work clothes tax-deductible for self-employed workers in Canada?”,
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Maybe, in the case of uniforms and protective clothing and shoes, but not everyday apparel. Talk to a tax preparer or an accountant about your situation. ”
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For ideas on how to earn extra income, see How to Make More Money in Canada: 6 Side Job Ideas.
The deadline for filing your income tax return is June 15, 2023 if you are self-employed or if your spouse or partner is self-employed. Note, however, that if you owe taxes, the payment deadline is May 1, 2023. (Usually it’s April 30, but this year it fell on a weekend.)
You must state income from commercial operations in your tax return. The Canada Revenue Agency (CRA) says business income “includes money you earn through any occupation, trade, manufacture or venture of any kind, adventure or venture in the nature of trade or any other activity you are involved with Pursue profit, earn.” is evidence supporting this intent.” Business income does not include labor income (employer’s wages and salaries).
If you repeatedly fail to declare all of your sources of income, you may be required to pay a penalty (at the federal and provincial/territorial levels). Learn more about false reporting and underreporting of income. If you’re looking to make up for a lapse in the past, you can apply to the CRA’s Voluntary Disclosure Program – it’s better to be proactive than waiting for the helmsmen to call you. The same applies if you have not submitted a tax return. Inform yourself soon to minimize penalties and interest.
If your side hustle generates $30,000 or more in revenue (before expenses) for any calendar quarter or four consecutive quarters (not necessarily a calendar year), you must register for a GST/HST number.
Self-employed people can deduct a wide range of business expenses, such as B. Business formation costs, home business use costs, insurance, legal fees, interest and bank charges, office supplies, telephone and utilities, property taxes and advertising costs, and more. Review the CRA’s list of eligible business expenses.
Perhaps in uniforms and protective clothing and footwear, but not in everyday clothing. Talk to a tax advisor or accountant about your situation.
When you fill out your tax return, include your gross and net income (or loss) from self-employment on lines 13499 through 14300. (If you have a loss, put the dollar amount in parentheses.)
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