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Ah, the joys of being self employed.
there are a few ways to be self employed, and the taxation varies.
the simplist is just setting yourself up as a small business/self employeed - you can even work under your own name this way.
in this case you would submit your tax return once a year, when all taxes will be due - most ppl will pay installments through the year to lessen the impact. You are taxed at the same rate as a normal emplyee, except that you can submit expenses
.
You will need to also register to collect GST (goods and services tax) which you will have to charge your customer(s) and submit either quarterly or yearly depending on the amount collected.
Then there are limited companies, and incorporated companies.
either of these require you draw a salary from the company and require monthly tax submissions and a poo-poo load of paper work. They do have some tax beneifts (corporate tax rates are fixed at 22%) and liability limitations, but unless you are employeeing someone else, the self-employeed route is much easier to manage.
be carefull though, as there are strict guidelines between being considered self-employeed and being an employee. some ppl try to save taxes by being self employeed, but are really just an employee of a company. If you are ever audited you will be liable for all back taxes plus a penalty.
FYI- personal taxes will vary from 0 to over 40%, depending on your income.
there are a few ways to be self employed, and the taxation varies.
the simplist is just setting yourself up as a small business/self employeed - you can even work under your own name this way.
in this case you would submit your tax return once a year, when all taxes will be due - most ppl will pay installments through the year to lessen the impact. You are taxed at the same rate as a normal emplyee, except that you can submit expenses
.You will need to also register to collect GST (goods and services tax) which you will have to charge your customer(s) and submit either quarterly or yearly depending on the amount collected.
Then there are limited companies, and incorporated companies.
either of these require you draw a salary from the company and require monthly tax submissions and a poo-poo load of paper work. They do have some tax beneifts (corporate tax rates are fixed at 22%) and liability limitations, but unless you are employeeing someone else, the self-employeed route is much easier to manage.
be carefull though, as there are strict guidelines between being considered self-employeed and being an employee. some ppl try to save taxes by being self employeed, but are really just an employee of a company. If you are ever audited you will be liable for all back taxes plus a penalty.
FYI- personal taxes will vary from 0 to over 40%, depending on your income.
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