Accounting and Tax Services for West End, New Westminster

Employment income and self-employment income are both reported on the same T1, but in different sections — employment on the T4 lines, freelance on Schedule T2125. The net profit from your freelance work (revenue minus eligible expenses) is added to your employment income and taxed at your combined marginal rate. You do not pay a separate tax rate on each source — they are combined. Because self-employment income does not have source deductions withheld during the year, you may owe a balance when you file, and if the amount is significant, CRA will expect quarterly instalment payments in subsequent years. Phoenix Knight calculates both the T1 and any instalment requirements as part of the filing.

Yes — once your cumulative taxable revenues in any rolling 12-month period exceed $30,000, GST registration is mandatory and must happen promptly. Once registered, you charge GST on eligible sales, remit on a quarterly or annual schedule, and claim input tax credits back on GST paid for your business expenses. Phoenix Knight handles the registration, configures the remittance schedule, and integrates GST tracking into your bookkeeping so the quarterly filings are produced directly from reconciled records rather than estimated separately.

Your available RRSP deduction limit appears on your most recent Notice of Assessment from CRA — it shows the current year's new room (18% of prior year earned income, up to the annual maximum) plus any unused room carried forward from previous years. You can also check it in real time through your CRA My Account login. Phoenix Knight reviews your limit as part of every T1 engagement, models the tax saving at your current marginal rate, and recommends the optimal contribution amount before the March 1 deadline. Over-contributing by more than $2,000 triggers a monthly penalty — accurate tracking prevents that.

Yes. Most West End small business owners who started in spreadsheets outgrow them around the time they add a second revenue stream, hire their first employee, or need to produce financial statements for a bank or landlord. Phoenix Knight migrates historical transaction data into QuickBooks Online or Xero, sets up the chart of accounts to match how your business categorises income and expenses, connects bank feeds for automated import, and configures GST settings so the platform produces accurate remittance figures without manual calculation. The migration typically covers the current fiscal year plus prior periods required for comparison reporting.

Not necessarily. CRA routinely sends "please verify" letters — formally called a matching or review inquiry — asking taxpayers to substantiate specific amounts on their return. These are not full audits; they are targeted requests to confirm a particular deduction or income amount. However, they do have a response deadline, and submitting an incomplete or poorly organised response can escalate the review into a broader examination. Phoenix Knight prepares the documentation package for West End residents who receive these letters, confirms what CRA is actually asking for (as distinct from what the letter implies), and submits a clear, supported response within the timeframe.