When filing a Canadian 2016 self-employed or contractor tax return, the filing deadline is June 15th 2017, or you may have to pay a late filing fee, which we will explain later.
Additionally, if you have tax owing, you will need to pay this amount by May 1st 2017. If you have missed the deadline then fear not, as the earlier you are able to file your 2016 self-employed tax return, the lower your late filing fee will be, along with less interest on the amount owing.
Self-employed tax return rebates/refunds
There are also cases where a self-employed tax return can actually provide a tax refund for the year. This is particularly common if you have supplementary T4 (employed) income, or if you have low self-employed income for the year.
Late filing penalty
After June 15th 2017, CRA (Canada Revenue Agency) advise they can enforce a late filing penalty of 5% of your 2016 balance owing. Additionally 1% of your balance owing for each month can also be charged, for each month that it was filed late, up until a maximum of 12 months.
If you have a balance owing for 2016, it will accumulate compound daily interest of 5% charged against it. This starts from the 1st of May 2017, which means the earlier you are able to file than the lower the amount required to pay.
Get a free quote
The best method is to get your self-employed tax return completed as soon as possible.
If you need to file your self-employed 2016 Canadian tax return, drop us an email for a free quote and consultation. Send us through your self-employed income for 2016, along with any expenses you have on file, and we can help assist from there.