Get money back as contractor.

[Dennis M]

Hi, I am working as contractor for a company three days a week/part time. I have heard that if I would buy some equipment (f.e. Digital camera) which I would use during my work at this company, I could get the money back from the goverment for my purchased article? Is that correct?

If yes, how can I do that.

thanks.

 

[rjessome]

Hi, I am working as contractor for a company three days a week/part time. I have heard that if I would buy some equipment (f.e. Digital camera) which I would use during my work at this company, I could get the money back from the goverment for my purchased article? Is that correct?

If yes, how can I do that.

thanks.

You can use these expenses as write-offs on your tax return.

 

[Dennis M]

Thanks for response rjessome,

by the way,

-do I have to inform the company about my write-offs?
-will I get the whole amount back or only the HST (12% tax)?

 

[jawadahmed6065]

It works differently. When you are to file the Tax return, you need to calculate all your earnings for your incorporation and expenses. And for the remaining amount you will file the tax. So heres your chance of declaring all expenses. Hope this clarifies.

 

[Jonboy]

Hi, I am working as contractor for a company three days a week/part time. I have heard that if I would buy some equipment (f.e. Digital camera) which I would use during my work at this company, I could get the money back from the goverment for my purchased article? Is that correct?

If yes, how can I do that.

thanks.

You can reduce taxes payable rather than get money back. If you are a self-employed subcontractor you will need to complete a form T2125 and file it with your tax return to report these earnings. There is a supplement to this form where you calculate the amount of the cost of the equipment you can claim as an expense.

 

[Harju]

As a contractor wouldn't you be able to claim the GST portion of HST paid on expenses if you are registered for HST? (I have no clue how the HST works with respect to input tax credits as I am from an sales tax free province).

 

[Jonboy]

As a contractor wouldn't you be able to claim the GST portion of HST paid on expenses if you are registered for HST? (I have no clue how the HST works with respect to input tax credits as I am from an sales tax free province).

You would be able to claim all the HST paid on your business inputs. However, if you are registered, you would usually have to collect HST from your clients (unless they were outside Canada) so the HST on inputs like the digital camera will reduce the net HST you owe the government.

I read this as an income tax question first time around. I think you may be right and that the OP was asking about HST.