In 1991, GST was a new, regressive and ridiculously expensive tax. Little did we know that the original 7% GST would jump to 13% HST in 2010. Paying HST on everything from cab fare to false teeth is bad enough, worse is that freelancers build debt every time we earn a dime.
There are ways of making the HST process fairly painless both in the paying and in the reporting. Your tax preparer will be happy to suggest ways to minimize the administration, the debt and the frustration.
At Artbooks, we’ve started charging an extra $30 on tax returns for anyone with an HST number. This $30 covers the work involved in assisting with HST, dealing with the added complication on the tax return, completing and filing the HST return and keeping a record of it.
If you need to talk about HST in your appointment, make sure to mention this when booking the appointment, and to inform your tax preparer at the beginning of the appointment.
When you come to your appointment, please bring:
- Your questions about registering for HST in this year
- Your HST number
- Know whether you are on the Quick or Regular method. (If you’re not sure, please call the CRA at 1-800-959-5525.)
- Know whether you’re to file quarterly or annually. If you’re on quarterly, bring copies of any HST reports filed so far this year
For HST non-registrants
If you are close to earning $30,000 freelance, consider registering for HST now.
(CRA scans tax returns to see who earns more than $30,000 and then cross references them with HST registrants. So be careful!)
Often when our income shoots up for the first time we are too busy to initiate anything so anxiety provoking as a new HST status. You are allowed to register for HST even if you dont make $30,000. Talk to your tax preparer about whether it might be advantageous to register especially now that its 13%.