Sole Proprietor & Self-Employed Tax Return Services in Calgary
If you run a business in your own name — freelancing, contracting, driving, trades or consulting — your income goes on a personal T1 return with a T2125 business statement attached. Summit Tax & Accounting prepares self-employed returns for Calgary sole proprietors, claims every expense you are entitled to, and files before the June 15 deadline.
Who This Is For
This service is for unincorporated business owners in Calgary: freelancers and consultants, independent contractors, trades and sub-trades, rideshare and delivery drivers, online sellers, stylists renting a chair, and anyone paid on invoices or a T4A rather than a T4. If you have not incorporated, the CRA treats your business income as your personal income — and that is exactly what a sole proprietor return reports.
Self-Employed Tax Deadlines
Self-employed Canadians have until June 15 to file their T1 return, but any tax owing is still due April 30. Filing by June 15 avoids the late-filing penalty; paying after April 30 still triggers interest.
| Obligation | Deadline (2026 tax year) | Note |
|---|---|---|
| T1 return with Form T2125 | June 15, 2027 | Applies to you and your spouse |
| Balance owing payment | April 30, 2027 | Interest accrues from May 1 |
| GST/HST annual return | June 15, 2027 | Payment still due April 30 |
| Quarterly instalments | Mar 15, Jun 15, Sep 15, Dec 15 | If net tax owing is over $3,000 |
| GST/HST registration | Once revenue passes $30,000 | Over four consecutive calendar quarters |
The late-filing penalty is 5% of your balance owing plus 1% for each full month the return is late, up to 12 months — and 10% plus 2% per month if you were charged the same penalty in any of the three previous years.
What We Handle
T2125 Business Statement
Your business income and expenses reported on Form T2125 and attached to your personal return, with the correct industry code and accounting method.
Home Office Expenses
If you work from a dedicated space at home, a share of your rent or mortgage interest, utilities, insurance and property tax is deductible. We calculate the percentage properly.
Vehicle and Mileage Claims
We work out your business-use percentage from your logbook and claim fuel, insurance, repairs, lease costs and capital cost allowance.
GST/HST Registration and Filing
We tell you when you have to register, set up your account and file your GST returns on the schedule the CRA assigns you.
CPP on Self-Employment Income
Self-employed people pay both halves of CPP, roughly 11.9% of net income above $3,500. We calculate it in advance so April is not a shock.
Late and Back-Year Filing
Missed a year, or several? We file the outstanding returns together and apply for relief from penalties where the CRA allows it.
Deductions Self-Employed Calgarians Commonly Miss
Every dollar of legitimate business expense reduces both your income tax and your CPP contributions. These are the ones people leave on the table:
- The business-use share of your cell phone and home internet bill
- The deductible half of the CPP contributions you pay on self-employment income
- Business-use-of-home costs: utilities, tenant insurance, maintenance, property tax and mortgage interest
- Vehicle costs beyond fuel — insurance, repairs, parking, lease payments and capital cost allowance
- Accounting, bookkeeping and legal fees, including the fee for preparing your business statement
- Tools, equipment and software bought for the business, claimed in the correct CCA class
- Advertising, website hosting and subscriptions used to run the business
- Client meals and entertainment, deductible at 50%, and travel to job sites
- Bad debts from invoices you were never paid for
Why Work With Us
We Know What Gets Questioned
Home office and vehicle claims draw CRA attention. We claim what you are entitled to and document it so the claim holds up.
Tax and GST in One Place
Your T1, your T2125 and your GST return are prepared by the same people, from the same numbers, so nothing contradicts itself.
Here All Year
Self-employment questions do not wait for tax season. Call us in September about an invoice or a CRA letter and you get an answer.
A Fixed Fee, Quoted Up Front
You know what the return costs before we start — and that fee is itself a deductible business expense.
What a Self-Employed Tax Return Costs
A sole proprietor return with a T2125 business statement starts at $220 plus GST. You get a fixed quote before any work begins, and the fee does not change afterwards.
How It Works
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Free consultation
We go over what your business does, what records you have, and whether GST registration applies to you.
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Send your numbers
Income and expense totals, or a shoebox of receipts — we work with either, and we will tell you what is missing.
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Preparation and review
We complete your T2125 and T1, walk you through the deductions claimed, and send it for approval.
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Filing and planning
We e-file with the CRA and tell you what to set aside for next year so the next bill is not a surprise.
Self-Employed Tax FAQ
How much tax will I pay if I earn $30,000 self-employed?
On $30,000 of net self-employed income in Alberta, you pay federal and provincial income tax on the amount above the basic personal amounts — roughly $16,000 federally and $22,000 provincially — plus CPP contributions of about 11.9% on net income over $3,500. Your actual bill depends on your expenses, credits and other income.
How do I get the biggest tax refund if I am self-employed?
Claim every legitimate business expense, because each one reduces both income tax and CPP. The largest missed claims are usually home office costs, the business-use share of your vehicle and phone, and capital cost allowance on equipment. An RRSP contribution before the March deadline reduces taxable income further.
How do I file a tax return for self-employed in Canada?
You file the same T1 personal return as everyone else, with Form T2125 attached to report business income and expenses. The filing deadline is June 15, payment is due April 30, and you can file electronically through NETFILE or have a preparer EFILE it for you.
Do I have to claim business income under $30,000?
Yes. All business income must be reported regardless of amount — there is no minimum. The $30,000 figure is the GST/HST small supplier threshold, which determines when you must register to charge GST, not when income becomes taxable.
What is the deadline for sole proprietor tax returns?
June 15 to file, April 30 to pay. The extra six weeks apply to you and your spouse, but the CRA charges interest on any balance still outstanding after April 30, so it is worth estimating and paying before then.
Do I need to register for GST/HST?
You must register once your revenue exceeds $30,000 over four consecutive calendar quarters, or in a single quarter. Below that you are a small supplier and registration is optional — though registering voluntarily lets you claim input tax credits on what you buy.
Get Your Self-Employed Return Filed
Call +1 (825) 734 7435 or book a free consultation. We will tell you what records to bring and quote a fixed fee before you commit.