Entrepreneurship & Small Business

Question about small business HST

  • Last Updated:
  • Jan 10th, 2018 9:47 pm
[OP]
Member
Jul 2, 2013
288 posts
32 upvotes
Newmarket

Question about small business HST

Hi all, I filed my HST quarterly this year for my sole prop small business. I filed the first three quarters myself including most ITC's but I left out more complicated things like mortgage payments, utility bill payments, insurance payments because a percentage needs to be calculated which I was not comfortable doing.
I plan to take my final quarter filings to a book keeper or accountant to file on my behalf and account for the mentioned things I did not file as ITC's throughout 2017.

I have all 12 months expenses including ITC's on 12 spread sheets which I have also documented which ITC's I have already accounted for and which I left out through out the year.
Did I do this correctly and oes this make sense?
6 replies
Member
Nov 13, 2006
494 posts
262 upvotes
Yes you are fine.

When you file your return as long as you do a catch up of any prior adjustments you are good to go.
[OP]
Member
Jul 2, 2013
288 posts
32 upvotes
Newmarket
asifnana wrote:
Jan 4th, 2018 9:53 am
Yes you are fine.

When you file your return as long as you do a catch up of any prior adjustments you are good to go.
Thank you.
Deal Addict
Feb 5, 2009
2431 posts
573 upvotes
Newmarket
lehmanr wrote:
Jan 3rd, 2018 11:59 am
Hi all, I filed my HST quarterly this year for my sole prop small business. I filed the first three quarters myself including most ITC's but I left out more complicated things like mortgage payments, utility bill payments, insurance payments because a percentage needs to be calculated which I was not comfortable doing.
I plan to take my final quarter filings to a book keeper or accountant to file on my behalf and account for the mentioned things I did not file as ITC's throughout 2017.

I have all 12 months expenses including ITC's on 12 spread sheets which I have also documented which ITC's I have already accounted for and which I left out through out the year.
Did I do this correctly and oes this make sense?
Yes, you are ok, you can to a catch up.
Percentage of home office expenses has to be prorated, you need to separate interest from principle payments, some of the home office expenses like interest, insurance and such have no hst component. The once that have hst component you can claim it as ITC providing that you have a space at home dedicated to your business, and that space is used more than 90% for the business.

If you need an accountant to help you out send me pm if interested, I am in your area and have number of clients like yourself.
Member
User avatar
Mar 3, 2013
462 posts
240 upvotes
Newmarket
lehmanr wrote:
Jan 3rd, 2018 11:59 am
Hi all, I filed my HST quarterly this year for my sole prop small business. I filed the first three quarters myself including most ITC's but I left out more complicated things like mortgage payments, utility bill payments, insurance payments because a percentage needs to be calculated which I was not comfortable doing.
I plan to take my final quarter filings to a book keeper or accountant to file on my behalf and account for the mentioned things I did not file as ITC's throughout 2017.

I have all 12 months expenses including ITC's on 12 spread sheets which I have also documented which ITC's I have already accounted for and which I left out through out the year.
Did I do this correctly and oes this make sense?
This is very similar to how I document my expenses. I operate a sole proprietor business much like yours. Doing your own bookkeeping is key to determining your price points. I also create a separate spreadsheet that details all of my costs for each project, it's something I highly recommend you consider doing. Over time you will see what your jobs are costing you and which you gained and lost on. Feel free to pm me if you want a better explanation.
A Licensed Electrical Contractor
Sr. Member
User avatar
Jan 1, 2009
822 posts
163 upvotes
Vancouver
lehmanr wrote:
Jan 3rd, 2018 11:59 am
Hi all, I filed my HST quarterly this year for my sole prop small business. I filed the first three quarters myself including most ITC's but I left out more complicated things like mortgage payments, utility bill payments, insurance payments because a percentage needs to be calculated which I was not comfortable doing.
I plan to take my final quarter filings to a book keeper or accountant to file on my behalf and account for the mentioned things I did not file as ITC's throughout 2017.

I have all 12 months expenses including ITC's on 12 spread sheets which I have also documented which ITC's I have already accounted for and which I left out through out the year.
Did I do this correctly and oes this make sense?
1)You have up to 4 years to claim ITCs from the filing deadline of the period which you would file your GST/HST return. For example, quarterly filers ending December 31, 2017 have until January 31, 2018 to file their return, and 4 years from that date - January 31, 2022, to claim the ITCs for the period ending December 31, 2017.
2)You cannot claim ITCs on mortgage payments and insurance since they are exempt of the GST/HST. You do not pay the GST/HST, so you cannot claim the ITC.
3)You generally can claim reasonable home office expenses, such as hydro which charges GST/HST to you, prorated to the percentage of business use home office space.

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