Navigating the Gig Economy Tax Landscape
As a freelancer, you are your own boss, which means you're also your own tax department.
To Register or Not?
If you stay below the $30,000 threshold in both tests (single calendar quarter and four consecutive quarters), you are a "Small Supplier." You don't have to register, but you also can't claim ITCs. Many freelancers register early to recover tax on laptop, software, and home office costs.
Setting Aside Money
Remember that the GST/HST you collect is not your money. It belongs to the government. We recommend opening a separate savings account and transferring the tax portion of every invoice immediately.
Invoicing Properly
Your invoice must include:
- Your Business Number (BN)
- The tax rate applied
- The total tax amount shown separately
Key Expenses to Claim
- Laptop and hardware
- Adobe CC / Microsoft 365 / Slack subscriptions
- Percentage of home internet and utilities
- Contractor fees (if you outsource work)
Calculate your next contractor invoice with GST/HST included →