Accountant for Victoria consultants

The Victoria accountant page covers the wider BC picture.

Incorporating: when it pays and when it does not

A corporation pays small-business rates only on income it keeps; income paid straight out is taxed about as if earned personally. For a consultant who needs every dollar, incorporating mostly adds cost: a T2, statements, a BC annual report and a separate bank account.

If you earn more than you spend, the deferral can pay, and adding a client or subcontractor gets easier. We compare both paths on your rate and hours; see the BC incorporation guide and should I incorporate.

When one public client is effectively your employer

The personal services business rules apply if, without your corporation, you would reasonably be regarded as an employee of the client. A consultant in a ministry office on a multi-year contract, with set hours, a government laptop and a director, can lean that way; a public-body client changes nothing.

If they apply, the corporation loses the small business deduction and most deductions and pays extra federal tax; several reassessed years can exceed what payroll would have cost. See our free PSB risk assessment and worker classification guide; a second client, deliverables and your own equipment help.

If you recognize your own arrangement, act before the CRA asks. Going forward, you can change the substance of the work or plan around the rules, since salary to you remains deductible either way. Where past returns were wrong rather than arguable, the Voluntary Disclosures Program exists for exactly this and works better before contact than after.

GST registration and invoicing a public body

GST registration is mandatory above $30,000 of taxable revenue in four consecutive calendar quarters, usually reached quickly, and it recovers GST on laptops, software and fees. Consulting is generally not subject to BC PST, but some related services, such as software and legal services, are.

Public bodies pay reliably but are strict about paperwork. An invoice needs your GST number, the contract or purchase order reference, the period and a clear total; anything missing restarts approval. Some public bodies have their own GST status or instructions, so read the invoicing terms. Track receivables weekly; the receivables guide helps.

Paying yourself, and the year-end

In a corporation you choose salary, dividends or a mix. Salary creates RRSP room and CPP and stays deductible even under the PSB rules; dividends are simpler. Recalculate the mix yearly as income and plans change. The salary versus dividends calculator is a start, and payroll in Victoria covers remittances and T4s.

At year-end, work done but not yet billed belongs in the right year, and a home office claim needs to reflect where the work really happens. Corporate tax in Victoria covers the T2, due six months after year-end.

What EverStone handles for you

One firm, one fixed fee agreed up front:

• Incorporation decision modelled on your real income
• PSB exposure reviewed against your contracts
• GST registration, invoicing set-up and returns
• T2 and year-end financial statements
• Salary and dividend mix recalculated each year
• Your personal T1 coordinated with the corporation

Fixed fees, fully online

A self-employed T1 with schedules commonly runs $275 to $500; corporate work is quoted after review; a 45-minute Advice Call is a flat $225 + GST. See what it costs.

Remote accounting for consultants

EverStone is a fully virtual CPA firm. There is no Victoria office and no local staff. Meetings are by video or phone, documents by secure exchange, with no visit needed. Contracts, invoices and the PSB question are reviewed together.