Who We Serve
Trades Contractors
Bookkeeping and tax support designed for Canadian trades contractors. Electricians, plumbers, HVAC technicians, carpenters, and general contractors working on a project or contract basis face specific tax obligations around HST, equipment depreciation, and subcontractor reporting. We work with trades contractors operating as sole proprietors and corporations.
Common situations we see
- Irregular project-based income across multiple clients or sites
- Uncertainty about HST obligations on labour versus materials
- T5018 subcontractor reporting not being handled
- Equipment and tool purchases with unclear CCA treatment
- Incomplete records from cash payments received
- Tax obligations handled reactively rather than throughout the year
We provide structure, documentation practices, and professional judgment based on your trade, income pattern, and compliance exposure.
Monthly Bookkeeping
Organized books every month with project income tracked, HST managed, and expenses documented before tax season.
- Monthly transaction categorization for all bank and credit accounts
- Bank and credit card reconciliations
- Project income tracking by client and job
- Expense monitoring including materials, equipment, and vehicle costs
- HST tracking and input tax credit monitoring
- Monthly financial statements
- Year-end file preparation for tax filing
- Setup and maintenance in Xero or QuickBooks Online
Tax Compliance
Returns prepared and filed by a CPA who understands project-based income, equipment costs, and subcontractor reporting obligations.
- T1 personal income tax return with T2125 self-employment schedule
- Full trade expense schedule including tools, materials, and vehicle
- CCA for equipment and tools over the immediate expensing threshold
- T2 corporate tax return if incorporated
- T5018 filings for subcontractor payments
- HST registration and periodic filings
- CRA correspondence support
Once revenue from taxable supplies exceeds $30,000 in a rolling 12-month period, HST registration is generally required. T5018 must be filed for subcontractors receiving more than $500 for construction services in a calendar year.
Tax Planning
Planning for trades contractors focuses on equipment decisions, documentation practices, and structure as the business grows.
- Incorporation analysis based on income level, cash flow needs, and administrative costs
- Equipment depreciation scheduling and CCA election decisions
- Cash payment documentation practices to reduce audit exposure
- Instalment planning for project-based income
Common questions
- Does HST apply to my work?
- HST applies to most taxable supplies under trades contracts. Once your total revenues from taxable supplies exceed $30,000 in a rolling 12-month period, registration is required. Residential new housing may have rebate programs, but the general rule is that labour and materials on trades contracts are taxable supplies.
- Do I need to file T5018 for subcontractors?
- T5018 reporting applies to payments made to subcontractors for construction services. The filing requirement applies regardless of payment method when subcontractors receive more than $500 in a calendar year.
- Is CRA more likely to audit trades contractors?
- CRA conducts compliance activity in the trades sector, particularly around unreported income and HST remittance. Documented cash payments, reconciled bank accounts, and complete HST records reduce audit risk.
Work with us
Trades contractor operating on a project or contract basis? Use the contact form to describe your situation and we will follow up directly.
Contact Teplov CPA