Income from a service business is considered business income. However, it does not include employment income, such as wages or salaries from an employer. If you earn money for services or products and are not an employee, you are considered self-employed. This income can come from a business you own or a partnership. 

According to Revenue Canada, business income includes money earned from: 

• A profession 
• Trade 
• Manufacturing 
• Any undertaking or adventure in the nature of trade 
• Any other profit-driven activity with supporting evidence 

Self-employment income is reported on your personal income tax return (T1) under the Statement of Business Activities (T2125) and not as employment income. You can deduct expenses incurred during the fiscal year if they were for earning income. 

Our Commitment to Personalized Service  

We are dedicated to helping you organize your business tax filing with a personalized approach. Our Personal Small Business worksheet simplifies gathering all your important expense data in one place, keeping you organized and ensuring all eligible expenses are captured for accurate tax filing and maximum deductions. We also provide a free Deductions Guide with explanations and reminders of deductible expenses to ensure you don’t miss anything. 

We understand that every client is unique, and we tailor our services to meet your specific needs. Our team is here to support you every step of the way, offering personalized advice and assistance to make the tax filing process as smooth as possible. Keep proof of your self-employment expenses to support your claims and avoid tax penalties. Pay any outstanding taxes by April 30th. Submit self-employment taxes to Revenue Canada by June 15th.