Attention Contractors! 2011 Tax Return
 

Just wondered what % Tax you are paying for the 2011 Tax Year.

I have put away a chunk in anticipation of the Tax bill, and the accountant is figuring out what is best from a tax perspective.

Thank you!

Re: Attention Contractors! 2011 Tax Return
 

Going to depend on province, and income:sneaky: And probably how good their accountant is too...

Re: Attention Contractors! 2011 Tax Return
 

As little as possible.

Re: Attention Contractors! 2011 Tax Return
 

Ha ha! of course :D

Re: Attention Contractors! 2011 Tax Return
 

I have only recently started working as a contractor - (as in the last 3 months) and so far, my expenses (licensing, registration, advertising etc) have far exceeded my income.... but I have been putting 40% of my income in a savings account with the idea that that is my tax payments.... I figure I would rather put aside more than I need. 2011 I really doubt I will have to pay any tax, but 2012 is looking more like it. since Christmas I have been doing really well.

Re: Attention Contractors! 2011 Tax Return
 

Nothing in taxes, except the GST collected, but I can't get around that CPP/EHT/whatever bill once a year.

Re: Attention Contractors! 2011 Tax Return
 

No way anyone can tell you other than your accountant, surely if you have one of these he can tell you. Depends on what inputs you are deducting, any capital cost allowances, personal allowances and how good your accountant is. What other businesses pay would be irrelevant to what you pay.

Re: Attention Contractors! 2011 Tax Return
 

I generally recommend new contractors to save 25% of their income and also put the HST aside. It is usually enough for earnings up to $80,000 before deductions. If more then 30%.

Re: Attention Contractors! 2011 Tax Return
 

JonboyE - this is how I have done it to date.