You work hard for your money. And paying the Tax Man a portion of those dollars certainly isn’t an easy thing to do – at least, we suppose, not from a personal perspective - because who likes handing over their earnings to the outstretched hand of said man?
Self-employment doesn’t come with guarantees, but the taxes that come with the projects are inevitable. These are the deadlines you want to make, so you don’t have to spend any more of your cash on a date with the Canada Revenue Agency (CRA).
Typically, the CRA deadline for annual income tax is April 30th of the following year. For self-employed individuals, however, the deadline is extended to June 15th, and if that date falls on a Sunday or a holiday, it's extended to the following business day.
Here's a fun filing fact: Although your payments aren't technically considered late until after June 15th, the CRA will apply interest on what you owe starting on April 30th. Surprise! So, you may not want to wait until June to file.
The CRA changes its interest rate every three months, and it applies a filing penalty of 5% of your balance owed plus an additional 1% for each month you're late. Remember though: As long as you file before June 15th, you won't have to pay any penalties. You will, however, owe the interest if you miss the April 30th deadline.
The Tax Man can prove very expensive and quite demanding when you make him wait! So, it's probably within your best interests to avoid increasing attentions at all costs.
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