Tax Preparation for Tradespeople and Contractors

Tax preparation with Elena Arsen, CPA, CMA · Arsen Accounting Services

Identify who earns the job income

Tell us whether you are an employee, a sole proprietor, a partner or an incorporated contractor. The business name on contracts and invoices helps establish which taxpayer earned the revenue. Employment income and independent job income need to be distinguished. If you incorporated or changed arrangements during the year, provide the dates and records for each period.

Bring job records as well as T5018 slips

A T5018 reports contract payments made by a contractor during its reporting period. Keep any slips you receive with your invoices, payment records and job summaries. Explain differences between these documents rather than treating each document as additional income. Include jobs paid by cash or electronic transfer and flag outstanding invoices. A slip alone may not describe every job or provide the full records needed for your return.

Separate job costs, equipment and vehicle use

Organize materials, subcontractor invoices, insurance, licences, rentals and other business costs into clear categories. Identify tools, machinery and vehicle purchases separately from ordinary operating costs. For mixed business and personal use, provide supporting information rather than assuming the full amount can be claimed. If vehicle expenses are relevant, gather a mileage log, total kilometres and operating records.

Keep GST/HST and subcontractor reporting visible

Provide GST/HST registration details, reporting periods and prior returns where applicable. Keep taxes charged and paid identifiable in the records. If you pay other subcontractors, tell us about those payments: separate information-return requirements may apply. Income tax preparation does not automatically include GST/HST, payroll or subcontractor information returns; the work and any additional requirements must be confirmed.

Start with the years and records you have

Tell us which tax years need attention, whether the business is incorporated and whether the records are organized. List missing statements or unresolved job totals at the start. We can discuss the preparation scope and what needs to be assembled before the return can be completed. Ongoing bookkeeping is outside the tax-preparation service described here.