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Category: Tax and Business Tips

Tracking Your Mileage

Posted on by david

If you use your personal vehicle for work or business, it is important to track your mileage because you may be able to deduct some of your vehicle expenses against your income. 

However, it can be difficult to remember to log all your trips, which can lead to lost deductions.

Luckily, there’s an app for that, several actually but the best of the lot from my testing is MileIQ. 

Advantages

  • MileIQ can be download on iOS and Android, so it does not matter what device you use. 
  • The app allows you to enter information about your vehicle and then set different rates for each type of trip 
  • Turn on Drive Detection
  • You can save work locations you drive to often so the app automatically calculates the rates for those drivers
  • Automate further by setting your work hours, this causes the app to track personal hours which can be used for calculating moving expenses
  • You can easily send your mileage to your accountant by using the send report link in the app

Disadvantages

  • If you choose to not “always allow” the app to track your location, the background feature does not work. 
  • If the app did not automatically track your trip, then you need to wait until you have a computer to classify your trip

Price

If you do not do a lot of driving, this is a great app as you get all the features just described for free but it is capped at 40 trips per month. 

Each drive counts as 1 trip.

Visit mileiq.com or contact SSL Group in Barrie or Newmarket today.

Income Tax Instalments

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PERSONAL TAX INSTALMENTS

Instalments are periodic payments of income tax that individuals have to pay the Canada Revenue Agency (CRA) to cover tax they would otherwise have to pay on April 30 of the following year.

WHO HAS TO PAY?

  • You have to pay your income tax instalments for 2024 if your net tax owing is more than $3,000 in 2024; and in either 2023 or 2022

INTEREST AND PENALTY CHARGES

Instalment interest is charged if ALL of the following conditions apply:

  • CRA sends you an instalment reminder in 2024 that shows the amount to pay
  • You are required to make instalment payments in 2024; and
  • You choose not to make instalment payments, or you make payments that are late or less than the required amount

Instalment interest is compounded daily at the prescribed interest rate.

You may also have to pay a penalty if your instalment payments are late or less than the required amount. CRA applies this penalty only if your instalment interest charges for 2024 are more than $1,000.

For more information click here.

CORPORATE TAX INSTALMENTS

Generally, corporations have to pay their taxes in instalments. An instalment payment is a partial payment of the total amount of tax payable for the year.

WHO HAS TO PAY?

  • You have to pay your income tax in instalments for 2024 if your federal tax owing is more than $3,000 in 2024 or in 2023. Similarly, you have to pay your income tax in instalments if your provincial tax owing for the current or previous year is more than $3,000
  • Corporations generally make monthly or quarterly payments towards their tax liability. A small Canadian Controlled Private Corporation (CCPC) is eligible to make quarterly instalments under certain circumstances

DUE DATES

  • Instalment payments are due on the last day of every complete month of your taxation year, or of every complete quarter if you are an eligible small CCPC

PAYING INSTALMENTS

  • Instalments may be paid by telephone or internet banking, at your financial institution or by mail

INTEREST AND PENALTY CHARGES

  • Interest is charged on late or insufficient payments. Instalment interest is compounded daily at the prescribed interest rate
  • You may also have to pay a penalty if your instalment payments are late or less than the required amount. CRA applies this penalty only if your instalment interest charges for 2024 are more than $1,000

For more information click here.

Harmonized Sales Tax (HST) Instalments

HST registrants who are annual filers are required to make quarterly instalments if their net tax payable for the preceding year is more than $3,000.

HST New Housing Rebate

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Did you know that you can recover some of the HST charged on newly constructed and substantially renovated homes? You could receive a rebate of 36% on the federal portion of HST and 75% on the provincial portion of HST when you buy, build or renovate your home.

When you purchase a newly constructed home, the rebates are usually factored in the selling price.  However in some instances, such as rental property purchases, owner-built homes and substantially renovated homes, you must apply for these rebates yourself.

These rebates are significant.  See the table below and contact our office for further information.

Does Your Home Qualify?

  • Did you a purchase a newly constructed home?
  • Did you build or have a contractor build a new home?
  • Did you substantially renovate or build a major addition to your existing home?
  • Did you build or buy a home to be leased by a tenant?
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