As the saying goes, death and taxes are both inevitable, but a good accountant can save you lots of trouble (and money) in this world anyway.
The reason truck drivers need accountants is because they are truck drivers.
“You’d be surprised at the number of truckers who don’t know how to apply for a GST number,” says Paul Knibbs, owner of Truckers Business Consulting Group
Another problem arises when truck owners miss the annual deadline and neglect to file a tax return. One year rolls into the next and the same thing happens the following year.
Unfortunately, Revenue Canada will only let you claim GST for up to four years. So an owner/operator who has neglected to file for a decade could/will be out around $30,000 in GST rebates alone!
Another major concern is meal expenses. This includes truck drivers of all stripes, whether they are T-4’d company drivers, sole proprietors, or incorporated owners. Currently the government allows company drivers to claim $17 per meal, up to $51 a day without receipts, but you must submit a TL2 form.
A truck driver has to eat every day, just like a tax auditor.
You may not get everything you claim, on the other hand, you’re not going to get what you don’t ask for either.
An owner/operator, whether a sole proprietor or incorporated, is considered a small business. This allows him or her to claim a wide spectrum of expenses, from paper towels to truck washes to parking fees. Truck repairs, insurance, licence and registration fees, accounting fees and financing or leasing costs, capital cost allowance may be claimed, as can other business costs such as wages paid to employees and office expenses.
Depending on the circumstances, some business use of the trucker’s home may also be claimed. This may include rent or mortgage interest, home insurance, certain repairs and maintenance, heat and electricity, and a portion of property taxes where applicable.
Another mistake often made by owner/operators happens when paying cash for goods or services and failing to keep a receipt. This includes Interac purchases, which are the equivalent to paying cash. Staple the invoice or bill to your Interac receipt and you’ll be able to show specifically what you spent your money on.
Lastly, finding a good accountant is like finding a good mechanic. They’ll save you tens of thousands of dollars over the course of your career. Once you have found one never let them go.