Accountant for Contractors & Trades in London, Ontario

When does an Ontario contractor need to register for HST?

For most businesses, mandatory registration is triggered when worldwide taxable supplies, including those of associated persons, exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters. This is revenue, not profit. The effective date differs between the tests, so check before issuing an invoice that crosses the threshold. Voluntary registration may also be available.

Source: CRA: GST/HST registration

Do plumbers, electricians and handymen have to charge HST?

A registered business generally charges HST on taxable Ontario services. Being a small trade business, working part-time or being paid in cash does not itself create an exemption. Confirm registration status and the place-of-supply rules. Keep HST collected separate from job revenue in your records and review eligible input tax credits.

Source: CRA: GST/HST for home construction

Do I need to file T5018 slips for subcontractors?

The rules generally apply when more than 50% of your business income-earning activities are construction and you pay Canadian-resident subcontractors for construction services. CRA’s administrative threshold is more than $500 per subcontractor in the reporting period, excluding GST/HST. Goods-only payments are not reported. The reported payment total can include sales taxes, so distinguish the threshold from the amount reported.

Source: CRA: T5018 requirements

When are T5018 construction subcontractor returns due?

T5018 returns are due six months after the end of the calendar year or fiscal reporting period chosen by the payer. Keep subcontractor identification details, invoices and payment totals organised throughout that period. This deadline is separate from payroll slips and your income-tax return.

Source: CRA: information-return deadlines

Is my helper an employee or a subcontractor?

An invoice or a subcontractor label does not settle the question. CRA considers the actual relationship, including control, tools and equipment, ability to subcontract, financial risk and opportunity for profit. Misclassification can affect payroll deductions and employer obligations. Review how the work is performed before deciding which slips to issue.

Source: CRA: construction worker status

Do self-employed contractors need WSIB coverage in Ontario?

Many construction independent operators, sole proprietors and working corporate officers require coverage. A limited exemption can apply to qualifying home-renovation work hired and paid directly by the homeowner or resident. Employees can still require coverage even where an owner qualifies for an exemption. Check the actual work and clearance requirements with WSIB before relying on an exemption.

Source: WSIB: construction coverage questions

Can I write off a work truck, tools or new equipment immediately?

Not always. Reasonable current business expenses and capital purchases are treated differently. A truck or durable equipment may need to be capitalised and deducted through capital cost allowance, subject to the applicable rules. Separate personal use, financing and operating costs. Buying something before year-end does not automatically make the full purchase price deductible.

Source: CRA: business expenses

What vehicle records should a plumber or electrician keep?

Keep receipts and a reliable record of business trips, their purpose and kilometres, plus total kilometres for the year. Where a vehicle has mixed use, only the eligible business portion of costs is deductible, subject to relevant limits. Fuel receipts alone do not establish business use. Corporate vehicles and employee reimbursements need separate review.

Source: CRA: motor vehicle expenses

How does job costing help a contractor make better decisions?

Assign materials, labour, subcontractors and other direct costs to the relevant job, then compare them with the agreed price and approved extras. Track overhead separately. That lets you see whether a busy schedule is producing a margin, where quotes were too low and which jobs need earlier billing or collection.

How should I track deposits, progress invoices and holdbacks?

Keep a job-level schedule showing contract value, approved changes, deposits, progress billings, receipts and outstanding holdbacks. A deposit in your bank account is not a reliable measure of job profit. Income recognition and HST timing can differ, so review the contract terms before treating deposits or holdbacks as available cash. For lien rights and contractual release dates, consult your lawyer.

Should I incorporate my plumbing, electrical or handyman business?

Consider profit remaining after personal spending, tax reserves and business costs, along with administrative fees, risk and growth plans. Incorporation is not automatically worthwhile at a particular sales figure. We can compare sole-proprietor and corporate scenarios and coordinate legal setup with your lawyer where appropriate.

Can you catch up several years of contractor bookkeeping and tax returns?

Yes. Start with your last filed returns, bank and card statements, sales invoices, subcontractor records and any CRA notices. We can assess the missing periods, identify upcoming deadlines and propose an order of work. You do not need to sort every receipt before the introductory call.

Do you serve contractors outside London, Ontario?

Yes. Our office is in London, Ontario—the Forest City—and we work with trade businesses virtually across Ontario. London-area owners can meet by appointment at Suite 217–379 Dundas St. We can also discuss remote support for businesses in nearby communities such as St. Thomas, Strathroy, Komoka and Dorchester.

What do contractor bookkeeping and accounting services cost?

Fees depend on transaction volume, employees, reporting needs, business structure and the condition of your records. We agree scope and fees before work begins. Use our What You’ll Pay calculator as a starting estimate, then book a complimentary introductory call to confirm the work your trade business actually needs.

Explore the fee calculator.