Accounting for Self-Employed individuals

IT consultant, graphic designer, writer, massage therapist, owner-operator trucker, or freelancer: in Quebec, hundreds of thousands of people make a living as self-employed workers. We know what it’s really like on the ground: fluctuating income, no source deductions, a first notice of assessment that comes as a surprise with the double QPP contribution, and the infamous Form T2125 (TP-80 in Quebec) to fill out every spring. Without guidance, people often end up paying too much in taxes or get caught off guard by tax instalments.

Find the ideal accountant for your self-employed situation: someone who maximizes your deductible expenses, plans your estimated tax payments, manages your GST/QST, and lets you know when incorporating becomes financially beneficial. We’ll connect you with the right accountant for this sector, for free, as many times as needed, and we’ll stay by your side. No obligation.

• Fluctuating income: Without source deductions, you should set aside about 25 to 30% of each payment for taxes and social security contributions.
• The dual QPP contribution: As a self-employed worker, you pay both the employee’s and the employer’s share, in addition to the QPIP and the HSF.
• The small supplier threshold: Once taxable income reaches $30,000 over four consecutive calendar quarters, registration for the GST/QST becomes mandatory.
• Tax instalments: Required as soon as the net tax exceeds $1,800 for a Quebec resident; plan for four instalments per year.
• Deductions Often Overlooked: Home office, vehicle, training, cell phone, professional dues, accounting fees.
• The right time to incorporate: when your profits consistently exceed your personal needs, it’s worth considering incorporating a business to take advantage of the reduced tax rate.
• Retirement without an employer: RRSPs, TFSAs, and a do-it-yourself withdrawal strategy, with an accountant to help structure it all.

• Business Tax Return: Form T2125 to the CRA and Form TP-80 to Revenu Québec, attached to your personal tax return.
• Self-employed individuals must file by June 15 at the latest, but any tax balance is due as early as April 30.
• Registration, collection, and remittance of the GST (5%) and QST (9.975%) for taxable supplies totaling $30,000 or more, all administered by Revenu Québec.
• Tax instalments are due on March 15, June 15, September 15, and December 15 to the CRA and Revenu Québec.
• QPP contributions (both portions), QPIP, and HSF calculated based on the annual return.
• Mileage log and pro-rata home office calculation to support deductions, including capitalization deductions for vehicles and equipment.
• Valid invoices (including GST and QST numbers) and retention of supporting documents for six years.

What expenses can a self-employed person deduct? More than you might think: home office expenses prorated by square footage, vehicle with mileage log, cell phone and Internet used partly for business, equipment, training, professional dues, insurance, and accounting fees. The rule: the expense must be used to generate business income, with supporting documentation. A vetted accountant from our network will optimize these expenses without crossing the line.

Do I need to register for GST/QST as a self-employed individual? Yes, as soon as your taxable income exceeds $30,000 over four consecutive calendar quarters, you lose your small supplier status and must collect the 5% GST and the 9.975% QST. Below that threshold, voluntary registration allows you to reclaim the taxes paid on your expenses (ITC and ITR). Your accountant will determine the right timing and frequency for filing.

How much does an accountant cost in this sector? According to the Bankeo Fee Barometer, based on 1,248 real-world cases (2024-2026), the median cost for this sector is around $1,500 per year. The cost varies depending on whether you’re a corporation or a self-employed individual, as well as the volume and complexity of your work. Bankeo’s matching service is free: you pay your accountant directly.

How can you switch accountants as a self-employed person without any stress? It’s easier than you think, and we’ll walk you through it. We’ll help you gather your documents (tax returns, T2125 forms, GST/QST statements) and choose the right time of year for the transition, often after filing. We’ll then match you with an accountant who’s a good fit for your situation, with no obligation, and if the match isn’t a good fit anymore, we’ll find you another one at no cost.

Local or Remote Accountant for a Self-Employed Individual? Both options work very well. Since your accounting is often done digitally, a remote accountant who’s familiar with your cloud-based tools can manage your accounts from anywhere in Quebec. If you’d prefer to meet with someone near you, we can also connect you with a local accountant. We start with your preference to find the right match.

When Does It Make Financial Sense to Register as a Self-Employed Individual? In general, incorporating becomes a good idea when your profits consistently exceed your personal needs: the corporation benefits from a lower tax rate and allows you to defer taxes. However, you need to weigh the costs of incorporation and compliance, your liability, and your future plans. An accountant from our network will run the numbers for your specific situation before you make a decision.