Should I pay taxes?

In Ontario you only need to pay taxes if you make under $30,000 a year. My business definitely makes under that. However, you can volunteer to pay taxes and earn "income tax credits" or something.

Is it worth it to pay taxes on my web development company? I'd have to pay 13% of all income made from developing websites if I opted for this. Just not sure what the credits are, or if it's worth it.

 

[ZippyGFX]

What are some benefits of "income tax credits"?

IMO taxes suck, if you don't benefit from income tax credits then don't pay taxes.

 

[skybluesam1]

Well like said above there would be theoretically no point in paying taxes unless the income tax credit benefitsd you which I highly doubt it will somehow.

 

[PrayerKid]

If it's something like it is in america, i know you pay your taxes then at the end of the year you get a tax return, that gives back some of the money that you paid (was taking out of your pay check) depending on how much you make, so you don't really get as much taken.

So i'd do more looking into that, ad if that's the same thing, i'd say go for it

 

[I_DONT_BOT]

Yeah, in England we get tax rebates where you've not earns as much as they've accounted for, so you get some refunded. In England I believe the basic tax free amount is around £8100

 

[Piramid]

You only need to pay taxes if you make under $30000? How does that make sense

 

[kmjt]

Do you mean over $30k? And Ontario represent

 

[ZippyGFX]

Ontario pride , and Yes I'm pretty sure he means over $30k+/year.

Also I made under 30k last year and I had to pay taxes where I worked, but I got some of it back afterwards.

 

Yeah I meant over $30k, not under.

 

[mage3158]

It'd help out the town, and I guess you'd get some back. Honestly it's probably not worth it.

 

If you can do your bit and it doesn't jeopardise your financial situation I guess you might as well. But you probably wont get any, noticeable benefits from it, no.

 

[Punjabi3]

If you aren't charging hst on your products and are making under $30k gross income there's no reason to register your business and have to pay the taxes.

Unless you are spending a lot of money on expenses then it might be worthwhile because you can offset the hst from your revenue with hst you paid but its really annoying doing this, trust me. A few things you can claim though are office supplies, materials, your business car repairs, food costs (restaurants, mcdonalds, etc. not groceries) There's a few more if I find my last years tax receipt I could put out the full list I was able to claim. It is good if you are forced to pay the hst but honestly it isn't worth it if you are making under $30k because you still have to pay your accountant to do the hst taxes and hope your expenses offset your income hst because most accountants will charge you upwards $500. If you're able to don't register your business unless you plan on spending a lot of money on expenses which would have to be paid no matter what.

Assume you spent $30k on expenses and grossed $28k income charging hst, you would be charged $3640 with your business being registered you would be rebated $3900 - $3640 meaning you would get $260 rebate after paying your hst, but with accounting fees and having to manage all your receipts it really isn't worth it in the end.

Never knew you lived in Ontario lol. Also don't take my $500 accounting fee as the industry norm you may find cheaper or higher prices.