For Trades & Construction
Trades & Construction Tax Accountant in Ottawa
If you swing a hammer, run wire, or quote jobs for a living, your taxes work differently from an office worker's, and most tradespeople quietly overpay because the deductions, the HST, and the subcontractor rules never get handled properly. The trades that keep the most are not the ones who earn more; they are the ones whose books are clean and whose accountant knows the rules.
Nour & Daniels Tax works with electricians, plumbers, HVAC techs, carpenters, framers, roofers, landscapers, and general contractors across Ottawa. We catch the deductions you miss, keep your HST and T5018 filings correct, and make sure the CRA has no reason to come knocking.
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Money On The Table
The deductions trades leave behind
These are the write-offs we most often find missing when a tradesperson brings us last year's return. Each one is legitimate when it is genuinely tied to earning your business income, and tracked properly.
Vehicle and travel
The business-use share of fuel, insurance, repairs, and lease or loan costs for your work truck or van, based on a kilometre log.
Tools and equipment
Smaller tools deducted in the year you buy them, and larger equipment depreciated through capital cost allowance (CCA).
Safety gear
Boots, hard hats, hi-vis, gloves, and other protective equipment required for the work.
Home office or yard
The business-use portion of a home office, and storage or yard space used for the business.
Phone, software, and subscriptions
Your business cell plan, quoting and invoicing apps, and trade software.
Licences, dues, and insurance
Trade licences, union or association dues, liability insurance, and bonding.
Subcontractor costs
Amounts you pay to other trades on your jobs, deducted as a cost of doing the work.
Meals on the job
Business meals tied to the work, at the portion the CRA allows (generally 50%).
Training and certification
Courses and tickets that keep your certifications current.
A self-employed electrician bills $95,000 and hands us a shoebox. Once we capture the business-use share of his van, his tools and a new compressor through CCA, his phone, his liability insurance, and a home office where he does quotes and invoicing, his taxable income drops by thousands, and so does his tax. He did not earn a dollar more. He just stopped leaving deductions on the table.
The rules built for construction
Construction has obligations that other businesses do not, and missing them is where penalties come from.
- T5018 subcontractor reporting: If more than half your business income is from construction and you pay subcontractors, you must report payments over $500 to each one on a T5018, filed within six months of your reporting period end. Skipping it draws penalties. We track and file these for you. (Source: CRA: T5018.)
- HST registration: Once you pass $30,000 in revenue over four consecutive quarters, HST registration is mandatory. Most trades cross this fast. We handle registration and filing. (Source: CRA: GST/HST.)
- Holdbacks and timing: Construction holdbacks and progress billing affect when income and HST are recognized. We make sure your books match how the jobs actually pay.
Problems We Fix
The traps that cost trades the most
Spending the HST you collected
The HST on your invoices is not your money, it is the CRA's, and when it gets spent on materials or payroll, filing time becomes a crisis. We help you set it aside and file on time.
The shoebox of receipts
No system means missed deductions and a stressful spring. We set up simple bookkeeping so your write-offs are captured as you go, not reconstructed in April.
Mixing personal and business
One bank account for everything makes every return a guess and a CRA review harder to survive. We separate the two cleanly.
Surprise instalments
Once you owe enough, the CRA expects payments through the year. Miss them and interest piles up quietly. We forecast and schedule them.
Falling behind on filing
A busy season turns into an unfiled year, then two. Our back taxes service brings it current without the lecture.
Cash jobs and unreported income
Unreported income is the fastest way to a costly reassessment. We help you get compliant and sleep at night, the right way.
Field Notes
Five habits that save trades real money
None of these are complicated. They are just the things the trades who keep the most actually do.
- Keep a kilometre log. A simple app or notebook tracking business driving turns your vehicle into one of your biggest deductions. Without the log, the CRA can deny the claim.
- Open a separate business bank account and card. It makes your books clean, your deductions defensible, and your year-end faster and cheaper.
- Set aside the HST as it comes in. Move it to a second account the day you get paid. It is not your money, and treating it that way prevents the filing-time scramble.
- Photograph receipts on the spot. Fading thermal paper loses you deductions. A quick photo into one folder is enough.
- Check in before year-end, not after. A short conversation in the fall lets us plan equipment purchases and instalments while there is still time to act.
Should your trade incorporate?
It is the question every growing trade asks, and the honest answer is: it depends on your numbers, not on what your buddy did.
- Staying a sole proprietor: Simpler and cheaper while your income is modest. You report on a T2125 with your personal return through our personal income tax service.
- Incorporating: Can offer tax deferral and liability benefits once your income is consistently higher. We handle the T2 through our corporate tax service and plan your salary-versus-dividend mix.
- The honest comparison: We run your real numbers both ways so the decision is based on dollars, not guesswork, and we revisit it as your business grows.
How It Works
How we work with trades
Sort out the records
We take your receipts, statements, and invoices however they come, and turn them into books that hold up.
Capture every deduction
Vehicle, tools, equipment, gear, home office, and more, claimed correctly so nothing eligible is left behind.
Handle HST and T5018
We register, file, and remit your HST, and prepare your T5018 subcontractor slips on time.
File the return
Your T2125 or T2, prepared accurately and e-filed, with the numbers reviewed with you first.
Plan the next year
Instalments, equipment timing, and the incorporation question, handled before they become problems.
Help Centre
Trades and construction tax questions
What can I write off as a tradesperson?
Generally, anything you spend to earn your business income: the business-use share of your vehicle, tools and equipment, safety gear, a home office, your business phone and software, licences and insurance, subcontractor costs, and business meals at the allowed portion. The key is that the expense is genuinely for the work and that you can support it with records.
Do I have to charge HST on my work?
Once your revenue passes $30,000 over four consecutive calendar quarters, you must register for and charge HST. Most trades reach that quickly. Until then you are a small supplier and registration is optional, though sometimes worth it. We assess where you stand and handle registration and filing. (Source: CRA: GST/HST.)
What is a T5018 and do I need to file one?
A T5018 is the Statement of Contract Payments. If more than half your business income comes from construction and you pay subcontractors, you must report payments over $500 to each subcontractor on a T5018, filed within six months of your reporting period end. Missing it leads to penalties. We track your subcontractor payments and file these for you. (Source: CRA: T5018.)
Should I incorporate my trades business?
It depends on your income and goals. Incorporating can offer tax deferral and liability protection once your earnings are consistently higher, but it adds cost and paperwork that may not be worth it at a modest income. We run your actual numbers both ways and give you a straight answer rather than a rule of thumb.
I have not kept good records this year. Can you still help?
Yes. We work with trades all the time who arrive with a shoebox or a phone full of receipts. We reconstruct what is needed, set up a simple system so next year is easier, and find the deductions hiding in the pile.
Can you do my bookkeeping as well as my taxes?
Yes. Clean books are where the savings start, so we can handle the bookkeeping through the year and the return at year-end, as one service. That way nothing is missed and there is no scramble in the spring. Reach out through our contact page to set it up.
Keep more of what you build
Bring us last year's return and this year's shoebox. We will show you what was missed and set you up so the next one is clean, compliant, and cheaper.
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