In the app today
Tax-ready all year, free
- Recurring invoices for monthly retainers
- PO or reference number on every invoice
- GST/HST worked out by the client's province
- Software, home office and travel expenses sorted by T2125 line
- A running set-aside number for sales tax, income tax and CPP
- Reminders before CRA instalment and filing dates
What usually goes wrong
Invoices rejected by accounts payable
Missing PO numbers and registration numbers are the usual reasons. Both have their own field and print on the invoice.
Retainers invoiced by hand every month
Set the invoice to recur. It goes out on schedule with its own number.
A big tax bill after a good year
Consultants often owe income tax and CPP in one lump. Home shows a running amount to keep aside, so a good year doesn't turn into a bad April.
The tax reality for consultants
Most consulting services are taxable, and for services the place of supply generally follows the client's address. An Ontario consultant billing an Alberta client usually charges 5% GST, not 13% HST.
Services to clients outside Canada may be zero-rated. They still count toward the $30,000 registration limit even though no tax is charged.
If you owe more than $3,000 in income tax in a year, CRA may ask you to pay instalments. CollabNorth reminds you before each instalment date.
At tax time: the Tax Ready pass
The worksheets are free to try during Early Access. The paid pass will be about $79 for sole proprietors and about $199 for corporations. It is not on sale yet. It gives you:
- A GST/HST worksheet laid out on CRA's return lines
- A T2125 package with your income and expenses by line
- A receipt audit that points out what is missing before you claim
Worksheets and guides only. You file with CRA yourself.
Invoicing that does the tax for you
Common questions
- Can I put a purchase order number on the invoice?
- Yes. The header has a PO or reference field, and it prints on the PDF.
- How do I bill a monthly retainer?
- Set the invoice to recur monthly. Each one is issued on schedule with its own number.
- Can I claim my home office?
- Often, yes, if you meet CRA's conditions. The help library explains how, and the business share goes on your T2125. CollabNorth doesn't work out the home office share for you yet.
General information to help you keep your own records. It is not accounting, legal or tax advice. Confirm details with the Canada Revenue Agency or your accountant.