Tax in BC - Freelancing
Sep 17th 2019 | 12:16 am
#1
Thread Starter
Forum Regular
Joined: Jul 2019
Posts: 145
Tax in BC - Freelancing
Hi guys,
Wondering if you could give me a basic idea of taxes in BC for self employment.
In the UK, best option is to provide your services through a limited company, take a lower salary and take the rest as dividends.
- So you pay Corporate tax, Employer/Employee NI contributions, and Income tax on Dividends.
What would be an equivalent or most efficient BC?
Either Sole Proprietorships or Incorporated Companies
For example, if I say an annual income of C$100K
Thank you!
Wondering if you could give me a basic idea of taxes in BC for self employment.
In the UK, best option is to provide your services through a limited company, take a lower salary and take the rest as dividends.
- So you pay Corporate tax, Employer/Employee NI contributions, and Income tax on Dividends.
What would be an equivalent or most efficient BC?
Either Sole Proprietorships or Incorporated Companies
For example, if I say an annual income of C$100K
Thank you!
Last edited by eversmannx; Sep 17th 2019 at 12:18 am. Reason: Add some more details.
Sep 17th 2019 | 6:19 am
#2
Banned
Joined: Apr 2009
Posts: 19,878
From: SW Ontario
Re: Tax in BC - Freelancing
Hi guys,
Wondering if you could give me a basic idea of taxes in BC for self employment.
In the UK, best option is to provide your services through a limited company, take a lower salary and take the rest as dividends.
- So you pay Corporate tax, Employer/Employee NI contributions, and Income tax on Dividends.
What would be an equivalent or most efficient BC?
Either Sole Proprietorships or Incorporated Companies
For example, if I say an annual income of C$100K
Thank you!
Wondering if you could give me a basic idea of taxes in BC for self employment.
In the UK, best option is to provide your services through a limited company, take a lower salary and take the rest as dividends.
- So you pay Corporate tax, Employer/Employee NI contributions, and Income tax on Dividends.
What would be an equivalent or most efficient BC?
Either Sole Proprietorships or Incorporated Companies
For example, if I say an annual income of C$100K
Thank you!
Basically you become self employed - register with the city you are living in and then invoice the company for your services. You pay your self employment taxes (after deductions for having a home office etc.,) and pay Canada Pension contributions for both the 'employer /employee' - but you get a tax credit for the 'employer' side. You have the option as to paying Employment Insurance... you have to register for GST/PST when you have an income in excess of $30,000 but it can be to your advantage to register prior to that figure, you get to claim the GST etc., back on things you pay out on.
This might be of use to you
https://www2.gov.bc.ca/gov/content/e...-guide-14steps
Last edited by Siouxie; Sep 17th 2019 at 6:22 am.
Sep 17th 2019 | 6:43 am
#3
Assimilated Pauper
Joined: Mar 2005
Posts: 40,070
From: Ontario
Re: Tax in BC - Freelancing
It's not usual for computer contractors to claim anything back on GST/HST. It's typically better to choose the quick method under which no claims are allowed.
Sep 17th 2019 | 9:22 am
#4
Thread Starter
Forum Regular
Joined: Jul 2019
Posts: 145
Re: Tax in BC - Freelancing
Sounds similar.
GST/PST looks to work very similar to VAT.
Thanks guys.
GST/PST looks to work very similar to VAT.
Thanks guys.
Sep 17th 2019 | 1:00 pm
#5
Assimilated Pauper
Joined: Mar 2005
Posts: 40,070
From: Ontario
Re: Tax in BC - Freelancing
Note that it's usual here, Ontario, for agencies to require that contractors incorporate. The usual thing is to establish what's called a numbered company; no name, just the next available number, so as to avoid the cost of a name search. BC may be different and you may not have an agent anyway.
Sep 17th 2019 | 2:53 pm
#6
Banned
Joined: Apr 2009
Posts: 19,878
From: SW Ontario
Re: Tax in BC - Freelancing
Note that it's usual here, Ontario, for agencies to require that contractors incorporate. The usual thing is to establish what's called a numbered company; no name, just the next available number, so as to avoid the cost of a name search. BC may be different and you may not have an agent anyway.
Some potentially useful links
https://www.moneywehave.com/freelanc...for-canadians/
Freelance Contracting 101 - The Urban Worker Project
https://www.canadianfreelanceunion.ca
https://www.flexjobs.com/internation...commuting-jobs
https://ca.indeed.com/jobs?q=Remote&l=British+Columbia
