Self-Employed Taxes Made Simple: Expenses, Records, and Smart Tips

What to keep in mind when you’re self-employed

• You file your income as “business or professional income,” not just salary.

• Keep good records: receipts, bills, logs (mileage, work hours), etc. The tax authorities may ask for proof.

• Only claim what is reasonable and actually used for business — not personal use.

  
  

 What you can claim — Home Office & Auto (and more)

 Home Office / Business-Use-of-Home

If part of your home is used as your “business office,” you may deduct a portion of home-related costs.

You can claim a share (proportion) of:

• Rent (if you rent) or mortgage interest (if you own) 

• Utilities: heat, electricity, water

• Internet (business portion) / phone (business portion) 

• Home insurance / property taxes (business portion, if home is used for business)

• Maintenance and minor repairs (proportional share)

  
  

How to calculate: figure out what portion of your home is used for business (for example, 10% of the floor space). Then claim roughly that same percentage of your home-costs. 

Also: many recommend not claiming depreciation (capital cost allowance) on your home-office if you own — because when you eventually sell your home, you might lose some of the benefit tied to the “home as principal residence.”

 Vehicle / Auto Expenses

If you use a personal vehicle for business (like going to meet clients, buying supplies, etc.) you can claim part of your costs: 

You can claim a portion (based on business-use share) of:

• Fuel and oil

• Insurance, registration, car licence

• Maintenance and repairs

• Depreciation (or capital cost allowance) if eligible

• Lease costs (if you lease the vehicle)

How to calculate:

• Keep a mileage log for the year: track total km and business km. 

• Calculate business-use percentage (e.g. if 5,000 km of 20,000 km total are business, that’s 25%)

• Apply that percentage to all eligible car costs to get a deductible amount.

Other Business Expenses You Can Claim

Besides home and auto, you can claim many other expenses if they’re for your business. Some common examples:

• Office supplies (paper, printer ink, stationery, etc.) 

• Phone and internet (business portion) 

• Insurance, small equipment, tools (used for business) — these count as business expenses. If you hire help/employees: wages and benefits paid to them count (not to yourself as owner).

  
  

 Tips to Maximize Your Tax Savings (and Stay Safe)

• Keep careful records all year long — receipts, logs, invoices. Helps if audited.

• Separate business and personal use. Don’t mix them in one deduction.

• Use accounting software or spreadsheets — helps track expenses and income.

• If your income varies a lot, consider paying taxes by instalments so you don’t get a big surprise in April.

• Retain old records (a few years worth) — in case authorities want to check.