Have you ever dreamed of paying fewer taxes on your hard-earned money? One way to accomplish this is by doing consulting work!
Whether you’re a Registered Nurse (RN), Registered Practical Nurse (RPN), Nurse Practitioner (NP), Pharmacist, or Pharmacy Manager, nothing is holding you back from doing consulting work. Even if you are just starting your career or you work in a position such as a Registered Pharmacy Technician (RPHT) or Pharmacy Assistant, consulting is a very viable option.As a consultant, you have the freedom to decide your hours, decide where you want to work, and which jobs you want to take. In addition, you’ll also be able to lower your yearly income taxes by writing off business-related expenses.
What is considered a write-off?
If you’re doing consulting work, you can expense certain things that you require to do your day-to-day job. One example is communication tools, such as a home phone, fax, mobile phone, and/or home internet. Furthermore, if you’re required to commute for your work using either public transportation or your personal vehicle, you can expense TTC tickets, monthly metro passes, tune-ups for your car, and fuel.
Additional write-offs can be made for educational courses that further your knowledge and your career; fees for your applicable licenses and insurance; dry cleaning for lab coats; and even the occasional meal. Over the course of a year, the expenses listed above can add up substantially and have a big impact on the taxes you pay.
What do I have to do to write off my expenses?
All you have to do is save the receipts for your business-related expenses, tally them up at the end of the year, and then write yourself a cheque in the amount of the annual accumulated amount. You can then declare the surplus amount as your yearly salary and the lesser amount will be taxed, ultimately saving you a lot of money. Furthermore, you should also consider charging for HST/GST to save even more money in the long run.