Top six tax tips for print industry professionals in B.C.

  • 2010-10-25
From Richmond to Atlin Lake, it’s tough to keep Print services operating in British Columbia now that the full effects of last summer’s HST have come upon us. Even though tax time is months away, being proactive in regards to your federal tax is more important than ever. Here are some ways you, as a Print company or small business owner in B.C., can stay vigilant. Figure out who will do your taxes and organize your paperwork well ahead of the April 30 deadline. The pressure of waiting until the very last minute may result in poor decision making.

Estimate your tax bill. If revenue is high for the tax year, you may want to make a capital expenditure such machinery or a computer before your year end. That way, some of the expenses can be defrayed through depreciation.

If your small printing service is not incorporated, remember that the federal government requires you to file a T2125 form, stating your business and professional income and activities along with your personal tax form. Plan ahead and keep all receipts, plus a mileage log for any vehicles.

Sole proprietors and self-employed people should keep aside 30 to 40 per cent of before-tax income in anticipation of paying income tax and Canada Pension Plan contributions. You must pay into CPP even if you’re the only employee.

Be careful not to exaggerate how much you spent on your home office. Canada Revenue watches that very carefully. The business portion of your home utilities should be 25 per cent of less of the annual total bills.

If, as the owner of a Print services business in Richmond or any other location in B.C., and you pay GST quarterly, stay in touch with the taxation office if you have made a mistake or run into trouble. Most times, the tax man will cooperate with you, particularly if you call well ahead of April 30.

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