Accountant for Saanich consultants
A lot of independent expertise in the Capital Region works from a spare room in Saanich: engineers, planners, environmental specialists, analysts, software developers and policy advisers. Their clients are often a short drive away in Victoria. EverStone handles the tax side of a consulting practice remotely, at a fixed fee.
EverStone is a consulting and agency accountant and a Saanich small business accountant.
Quick answer: A Saanich consultant registers for GST once revenue passes $30,000 in four consecutive quarters, can deduct a home office used as the principal place of business, and should incorporate only when profit exceeds what the household spends. A corporation that works like an employee of one client risks being a personal services business. EverStone handles the T1 or T2, GST and bookkeeping remotely, from $300 a month for bookkeeping.
For an unincorporated consultant, a self-employed T1 with the T2125 commonly costs $250–$450. For an incorporated practice, monthly bookkeeping from $300 a month includes the GST return, and the year-end T2 is added to a fixed fee. A one-off question about incorporating can go to a 45-minute session at a flat $200 + GST.
When a consulting practice should incorporate
Incorporating does not reduce tax on money you spend. It defers tax on money you leave in the company. A consultant who bills well and spends most of it personally gains little from a corporation, and pays for an extra return, a separate bank account and a minute book every year.
The picture changes when profit runs ahead of household needs. Income left in the corporation is taxed at the small business rate, which in BC includes a 2% provincial portion, and is invested or kept for a quieter year. Contract work for government and institutions often comes in waves, so that buffer has real value. The BC incorporation guide and the incorporation calculator show where the break-even falls.
One client, every day, for two years
Consulting in the Capital Region often means long engagements with a single public-sector client. A consultant may have a building pass, a government email address and a seat in a project team for years. If the corporation would be an employee but for its existence, the CRA can treat it as a personal services business.
The consequences are sharp: no small business deduction, so the general corporate rate applies, and deductions limited to salary and a few costs. The tests look at control, ownership of tools, chance of profit and how integrated the worker is in the client’s organization. Multiple clients, your own equipment and fixed-price deliverables all help. The personal services business review sets out the factors.
GST, invoices and the quick method
A consultant must register for GST once taxable revenue passes $30,000 in four consecutive calendar quarters. Many register earlier, because public-sector and business clients expect a GST number on the invoice and the consultant can recover GST on a laptop, software and the home office. Professional services are generally not subject to BC PST, so most consulting invoices carry GST alone.
Small service businesses can elect the quick method, remitting a set percentage of GST-included revenue instead of tracking input tax credits. For a consultant with few expenses it can leave a little GST in the business. The quick method calculator compares the two on your own figures.
Most new registrants file annually, because revenue is well under $1.5 million. An annual filer that is a corporation files and pays three months after year-end. Setting the GST portion of each payment aside as it arrives means the annual return is a transfer, not a scramble.
Working from a house in Gordon Head or Cordova Bay
A workspace in the house is deductible if it is the principal place of business, or is used only for the business and regularly for meeting clients. For a sole proprietor the claim is a share of rent or mortgage interest, utilities, insurance and property tax, based on floor area.
Inside a corporation it works differently. The company can reimburse the owner for the business share of home costs under a documented arrangement, or pay rent. Each has consequences for the owner’s return and for the principal residence exemption. The home office guide for incorporated owners compares them.
Paying yourself, and the year-end
An incorporated consultant decides each year between salary and dividends. Salary creates RRSP room and CPP pensionable earnings, and is deductible to the company. Dividends do not create RRSP room, but they avoid payroll. A mix is common. The decision is made before the corporation’s year-end, while it can still change the result. Use the salary versus dividends calculator to compare.
Owners who pay themselves by dividend often face quarterly instalments, required when net tax owing exceeds $3,000 in the current year and in either of the two previous years. Building them into the monthly draw avoids a large April bill. See personal tax in Saanich.
Between contracts
Public-sector work tends to arrive with fiscal-year budgets, and a contract that ends in March may not be replaced until summer. A corporation with retained earnings can keep paying its owner a modest salary through the gap. A sole proprietor has only personal savings to draw on. Planning the gap is one of the more practical reasons to incorporate.
The gap is also a good time to tidy the administration. Confirm the CRA has your current address in My Business Account, check that the GST filing frequency still fits your revenue, and sign up for deadline reminders so the next filing date does not surprise you. If you drive to client sites in Victoria or the West Shore, keep a log of each trip. The vehicle deductions guide explains what counts as business driving.
What EverStone handles for you
One CPA, one fixed fee agreed up front:
- Incorporation advice before the decision is made
- Personal services business review of major contracts
- GST registration, invoicing and quarterly or annual returns
- Home office, vehicle and equipment claims
- Salary and dividend planning before year-end
- T2 corporate return, or T1 with the T2125
Fixed fees, fully online
EverStone is an Abbotsford CPA firm serving Saanich consultants entirely online. There is no Saanich office. For a practice that already runs from a home office and a laptop, a remote accountant fits the way you work: records through a secure upload link, video meetings when they help, and answers by email. See what it costs.
Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, an Abbotsford CPA firm working with small businesses and incorporated owners across British Columbia. Updated . About the firm · Send an enquiry
What a consultant has to get right
| Item | Why it matters |
|---|---|
| GST registration | Mandatory once revenue passes $30,000 in four consecutive quarters |
| Major contracts | One long engagement can create personal services business risk |
| Home office | Deductible on the right basis, with a floor-area calculation |
| Owner pay | Salary, dividends and instalments planned before year-end |
| Sales tax where you operate | 5% GST plus 7% BC PST: two registrations, two returns |
Source: Agency and consulting accounting. General information, not advice.
Saanich accounting for independent consultants FAQ
Should I incorporate my consulting practice?+
Is a long government contract a personal services business risk?+
Do consultants charge BC PST?+
Can my corporation pay for my home office?+
What does an accountant cost for a Saanich consultant?+
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Related services and local guides
Nearby cities, the rest of what we do for Saanich businesses, and the reference pages behind this one.
Fees are fixed and agreed in writing before the work starts; the published fee page shows the starting points.
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