Those new to self-employment may not realize that even though you have until June 15 to file your taxes, you still have to pay them by April 30. It’s a bit of a tax quirk (one that veteran business owners seem to forget, too).
You won’t know exactly what you have to pay until you’re ready to file, but you have to pay well before the filing date. So, do your taxes at the same time as everyone else, says Paul Panabaker, a senior partner at Davis Martindale in London, Ont. Better yet, pay in quarterly installments, which the CRA asks self-employed people to do.
The bottom line: Penalties can add up: If you fail to pay small business taxes by April 30, you’ll owe 1% interest per month on any outstanding balance.
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What overlooked tax-saving strategies and measures should business owners take advantage of? Let us know by commenting below.