As we approach the final quarter of 2021, I have listed a few things to consider before the end of the year.
Available subsidies
Visit the CRA and Ontario websites for the various subsidies that may still be available to help people in need during this pandemic.
CRA Covid Subsidies
Reminder that most Government Subsidies are taxable in 2021 and you will get a tax slip in Feb/22. Plan your cashflow for this unusual situation.
Many people who usually get a refund might owe this year due to subsidies.
Canada Recovery Benefit
Note that this subsidy is taxable and a portion of the subsidy could also be repayable if you earn more than $38,000 in the year from other sources.
RRSP
Some may have cashed in RRSP’s during the year to help with cash flow. A small percentage of the RRSP is withheld for taxes but not enough. The balance will be due on filing in Apr/22.
Charity Lotteries
It is charity lottery season. This is a great way for charities to raise money. Please continue to support your favourite charities but keep in mind that it is a lottery and not a donation. Tax receipts are not issued for this and they are not deductible.
Disability Tax Credit
If you have parents or children with a disability, have your doctor complete the disability tax credit form T2201 and send it to CRA to see if they qualify for the credit. Credit can be claimed by the taxpayer or transferred to you in some cases.
HST
Reminder that you have to register for HST if your sales are greater than $30,000 for the year. You must charge your clients 13% and remit this to CRA net of HST that you pay on business purchases.
New Business
A common theme among those who become self-employed or incorporate a new business is that they wait too long before contacting an accountant. Then they discover a number of things that should have been done earlier or that were done incorrectly. Contact an accountant before you start a new business.
Other Notes
I hope you find this general information helpful. Please consult with your accountant or myself if you have any questions.
This material is provided for general information and is subject to change without notice. Please consult with your professional advisor before you act on any of the above information to ensure it’s right for you.
