Self-employment income

If you work for yourself, you report business or professional income on Form T2125. You pay tax on revenue less allowable expenses.

No tax is withheld, so you must set money aside. Many people move a percentage of each payment into a separate account for income tax, CPP and any GST/HST. The right percentage depends on your income and province.

Using your own name does not change this. A sole proprietor and the business are the same person for tax. A corporation files separately, see corporate tax.