Advanth LLP LINDA YU CPA PC INC Chartered Professional Accountants

📢 Got a CRA Instalment Reminder This August?

Before you automatically pay the amount shown, it may be worth taking a few minutes to check whether it still reflects your actual 2026 tax situation.

If you recently received an Instalment Reminder from CRA, there’s an important date coming up:

📅 September 15, 2026

This is especially relevant if you’re:

🔸 Self-employed
🔸 Earning rental income
🔸 Receiving significant investment income
🔸 Working more than one job
🔸 Earning commission income
🔸 Receiving income where little or no tax is withheld

The key point:

Receiving a CRA instalment reminder does not necessarily mean the suggested amount is exactly what you should pay.

CRA calculates the suggested amount using information it already has.

But your 2026 situation may be different.

Maybe:

🔸 Your business income is lower this year
🔸 You sold a rental property
🔸 Your investment income changed
🔸 Your income increased significantly

CRA provides different methods for calculating instalments, including a current-year option based on your estimated 2026 tax situation.

💡 Here’s a simple example:

Suppose CRA asks you to pay a $5,000 instalment on September 15.

If your income has dropped substantially in 2026, you may not necessarily need to simply pay the $5,000 without reviewing the calculation first.

Your actual instalment requirement should be assessed under the applicable CRA rules.

But ignoring the reminder isn’t the answer either.

⚠️ If instalments are required and you pay too little or pay late, instalment interest — and potentially penalties — may apply.

Important 2026 instalment dates:

📅 March 15
📅 June 15
📅 September 15
📅 December 15

For most taxpayers outside Quebec, instalments may be required when net tax owing is more than $3,000 for 2026 and also exceeded $3,000 in either 2025 or 2024.

So before September 15, don’t just ask:

“How much does CRA say I should pay?”

A better question is:

“Based on my actual 2026 income, how much should I be paying?”

📌 Received an August CRA Instalment Reminder?

If you’re unsure whether the amount still makes sense, this is a good time to have it reviewed — before making the payment.

Bring your CRA instalment reminder together with your latest 2026 income information.

We can review your estimated tax position, consider the applicable CRA instalment calculation options, and help you understand whether the September amount still makes sense before the September 15 deadline.

Sometimes the CRA amount may be appropriate.

Sometimes your current-year circumstances may support a different calculation.

The important part is knowing which situation applies to you before the deadline arrives.

💬 If you received a CRA instalment reminder and aren’t sure what to do with it, feel free to reach out for a review.

Source: Canada Revenue Agency — Required Tax Instalments for Individuals

(General information only. Individual tax circumstances vary, and this post is not a substitute for personalized tax advice.)

📢 It’s Only August — Why Think About Your Taxes Now?

Because by the time tax season arrives, many planning opportunities are already gone.

Late summer is actually a good time for a quick tax check-in.

You still have several months left in the year to make adjustments if something has changed.

Key Changes to Consider:

🔸 Changed jobs or received a raise

🔸 Started a side business

🔸 Bought or sold investments

🔸 Purchased a rental property

🔸 Started earning commission income

🔸 Expect a large bonus

🔸 Have significantly more income than last year

None of these automatically mean you’ll have a tax problem.

But they can change what your tax return looks like.

Why a Mid-Year Review Matters:

🔸 Estimate your total income

🔸 Check whether enough tax is being withheld

🔸 Organize deductible expenses

🔸 Prepare for any balance you may owe

For self-employed individuals and people with income that isn’t taxed at source or doesn’t have enough tax withheld, this can be especially important.

Important Reminder:

🔸 You don’t need to prepare your tax return in August.

🔸 You just need to know where you stand.

A little planning now can mean fewer surprises next spring — and much better decisions before December 31.

🚩 The $30,000 rule trips up more new business owners than anything else.

In Canada, you MUST register for GST/HST once your taxable revenue crosses $30,000 — either in a SINGLE calendar quarter, OR over the past FOUR calendar quarters combined.

Pay attention to the wording:
🔸 NOT profit — REVENUE (before expenses)
🔸 NOT each business — worldwide taxable supplies combined
🔸 Crossing $30K in a single quarter triggers it immediately.
🚨 Miss it, and CRA can make YOU pay the GST/HST you should have collected — out of your own pocket.
💡 Under $30K? Registration is optional. But some businesses voluntarily register early to claim Input Tax Credits (ITCs) on equipment, supplies, and rent.
📌 At Advanth LLP, we help Saskatoon small business owners file accurately and plan ahead.
💬 June 15 is the deadline for self-employed returns. Message us today!

📞 306-850-7818 | 📧 [email protected] | 📅 https://advanth.com/online-booking/

Mixing Personal and Business Expenses? That's Where Problems Start.

💳 One bank account. Groceries on the business card. "I'll sort it later." Sound familiar?

This is the #1 bookkeeping mistake new business owners make.

Why it matters:

1️⃣ Poor record-keeping = higher audit risk
If personal and business are tangled, you can't prove what's deductible.

2️⃣ You over-claim OR under-claim
Estimates don't hold up in a review. You either overpay tax or get your deduction denied.

3️⃣ Bookkeeping costs go UP
We spend billable hours untangling messy books that should have been separate from day one.

4️⃣ If you're incorporated — it gets worse
Mixing corporate and personal funds can create tax AND legal headaches (shareholder benefit issues, denied expenses, reassessments).

The fix is simple:
✅ Separate business bank account
✅ Dedicated business credit card
✅ Track shareholder loans properly (if incorporated)
✅ Pay yourself through proper draws/payroll

💡 Separation isn't just about organization. It's about protection when CRA asks questions.

📌 At Advanth LLP, we help Saskatoon small business owners and individuals file accurately, plan ahead, and save on taxes — not just check boxes.

💬 Message us before tax season gets loud — early planning saves more than last-minute scrambling.

📞 306-850-7818 | 📧 [email protected] | 📅 https://advanth.com/online-booking/

🚙 Vehicle deductions: one of the most claimed, and one of the most reviewed.

If you use your vehicle for business (self-employment, commission work), you can deduct a portion of:
✅ Fuel
✅ Insurance
✅ Maintenance & repairs
✅ Registration
✅ Lease payments (within limits)
✅ Capital Cost Allowance (if owned)

BUT — only the business-use %. And only if you can prove it.

CRA expects to see:
📋 Total kilometres driven during the year
📋 Business kilometres driven
📋 Date, destination, and purpose of each trip

Without a log, your claim is indefensible.

⚠️ The most common trap? Claiming your morning commute from home to your regular workplace as "business mileage." That's considered PERSONAL — not deductible.

Another watch-out: a large vehicle claim vs. a small income draws attention. Fast.

💡 Good records protect your deduction. Poor records put it at risk — and your entire return becomes harder to defend.

📌 At Advanth LLP, we help Saskatoon small business owners and individuals file accurately, plan ahead, and save on taxes — not just check boxes.

💬 Message us before tax season gets loud — early planning saves more than last-minute scrambling.

📞 306-850-7818 | 📧 [email protected] | 📅 https://advanth.com/online-booking/

💸 Driving Uber. Selling on Etsy. Freelance gigs. Side consulting.

If you're earning extra income — even "just a few thousand" — CRA considers it taxable.

❌ "I didn't get a T4 so it doesn't count."
❌ "It's too small to matter."
❌ "Nobody reports cash, right?"

All wrong. And all risky.

The good news? Business income lets you deduct real expenses:
✅ Platform fees (Uber, Etsy, Amazon, etc.)
✅ Supplies and materials
✅ Advertising
✅ Business-use portion of phone & internet
✅ Mileage (if tracked properly)

The catch? You need proper records. And you need to set aside money for tax — no one is withholding it for you.

⚠️ Once side income becomes consistent, it's a BUSINESS in CRA's eyes. Different rules, different scrutiny.

📌 At Advanth LLP, we help Saskatoon small business owners and individuals file accurately, plan ahead, and save on taxes — not just check boxes.

💬 Message us before tax season gets loud — early planning saves more than last-minute scrambling.

📞 306-850-7818 | 📧 [email protected] | 📅 https://advanth.com/online-booking/

⏳ "It's been weeks. Where's my refund?" Here's what's likely happening.

Most refunds process quickly if you filed electronically. But sometimes, things slow down.

Common reasons for delays:

1️⃣ CRA review or verification
Medical expenses, tuition, childcare, and rental claims often get flagged. CRA holds the refund until docs are provided.

2️⃣ Missing or mismatched slips
If CRA has a T4 or T5 on file that wasn't included in your return, processing pauses until it's resolved.

3️⃣ Identity verification
Occasional anti-fraud checks.

4️⃣ Outstanding balances from prior years
CRA can AUTOMATICALLY apply your refund to past debts — even CRA debts that aren't recent.

5️⃣ Paper filing
Paper returns take WEEKS longer than electronic.

6️⃣ Other debts owed to government
Student loans, EI overpayments, provincial family support — all can intercept refunds.

🚨 A delayed refund doesn't automatically mean a problem. Often, CRA just wants more info.

Check CRA My Account first — any document requests show up there.

💡 Clean, accurate returns move faster. Returns with red flags get held.

📌 At Advanth LLP, we help Saskatoon small business owners and individuals file accurately, plan ahead, and save on taxes — not just check boxes.

💬 Message us before tax season gets loud — early planning saves more than last-minute scrambling.

📞 306-850-7818 | 📧 [email protected] | 📅 https://advanth.com/online-booking/

Filing Early vs. Filing Late — Does It Really Matter?

⏰ "I'll get to my taxes eventually." Famous last words.

Technically, meeting the deadline is all CRA requires.
Practically? Timing affects your cash flow, benefits, and stress level.

Why filing early works in your favour:
✅ Faster refunds — earlier filing = earlier deposit
✅ Earlier benefit recalculations (GST/HST credit, CCB)
✅ Time to fix missing slips before the pressure builds

What happens if you miss the deadline AND owe tax?
❌ Late-filing penalty: 5% of balance + 1%/month (up to 17%)
❌ Interest compounds daily
❌ Repeat offenders face 10% + 2%/month penalties (up to 50%)
❌ Benefit payments may pause

⚠️ Self-employed? Your filing deadline is June 15 — but your PAYMENT deadline is still April 30. Miss that and interest starts May 1.

Proactive taxpayers don't panic in April.
They file clean and move on.

📌 At Advanth LLP, we help Saskatoon small business owners and individuals file accurately, plan ahead, and save on taxes — not just check boxes.

💬 Message us before tax season gets loud — early planning saves more than last-minute scrambling.

📞 306-850-7818 | 📧 [email protected] | 📅 https://advanth.com/online-booking/