If you’re self-employed in Canada — a sole proprietor, freelancer or independent contractor — you’ll hear that your tax deadline is June 15. That’s only half true.
Two dates, two different things
- June 15 is generally the filing deadline if you, or your spouse or common-law partner, carried on a business during the year.
- April 30 is still the payment deadline for any balance owing.
If you owe tax and wait until June 15 to file and pay, interest generally applies from May 1 on the unpaid amount.
Why this catches people
Employees have tax withheld on every paycheque. Self-employed people don’t — so a balance owing at year-end is normal. Combined with the later filing date, it’s easy to assume payment can wait too.
A practical approach
- Do your books early enough to estimate what you owe by mid-April.
- Pay the estimate by April 30.
- File by June 15. If you overpaid, the difference is refunded.
Instalments
If your net tax owing is more than a set threshold in the current year and in either of the two previous years, the CRA may ask you to pay quarterly instalments — generally on March 15, June 15, September 15 and December 15. Instalment reminders are based on your prior years, and interest can apply to late or insufficient instalments.
Set aside as you go
The simplest habit: move a percentage of every payment you receive into a separate savings account for tax (and GST/HST, if you’re registered). The right percentage depends on your income — your bookkeeper can help you estimate it.
This article is general information, not tax advice for your specific situation.