Drive for Uber or Lyft? Deliver for DoorDash, Skip, or Uber Eats? The CRA considers you self-employed, which means you’re responsible for reporting all of it — even if it’s part-time or a side hustle.
Here’s what you need to know.
You’re self-employed
The moment you earn income from a ride-share or delivery platform, you’re running a small business in the eyes of the CRA. That means:
- You report all income on Form T2125 (Statement of Business Activities)
- You’re responsible for your own CPP contributions — both the employee and employer portions, totalling about 9.9% of your net earnings
- You can deduct legitimate business expenses to reduce what you owe
What counts as income
Everything counts: fares, delivery fees, tips, bonuses, and incentives. The platforms will often provide monthly income summaries — but verify them against your own records, as errors happen.
What you can deduct
Vehicle expenses are usually the biggest deduction for gig workers. You have two options:
Actual expenses: Track your gas, insurance, maintenance, repairs, registration, and depreciation. You’ll need a mileage log showing business vs. personal use, and you can only claim the business portion.
Simplified mileage rate: Claim a flat rate per kilometre driven for work (the CRA rate varies by year). Less paperwork, but usually a smaller deduction.
Other expenses you can claim:
- Phone and data plan (business portion only)
- Delivery bags or equipment
- Car washes
- Parking fees and tolls paid on the job
- Accounting or professional fees
What you cannot deduct: personal vehicle use, parking tickets, or speeding fines.
GST/HST
If your income from gig work exceeds $30,000 in a 12-month period, you’re required to register for a GST/HST number and remit the tax on your earnings. If you’re close to that threshold, it’s worth tracking carefully.
Staying organized
The hardest part of gig taxes is usually not knowing what to save. A few habits that help:
- Keep a mileage log (date, kilometres, purpose)
- Save all fuel and maintenance receipts
- Track your platform earnings weekly, not just at year end
- Set aside 20-30% of income for taxes as you go
Accountly is built for exactly this kind of self-employed work. You can track income from multiple platforms, scan receipts, and generate the reports you need at tax time without the scramble.
The information in this guide is for general informational purposes only and is not intended as accounting, tax, business, or legal advice. Accountly does not provide professional services or act as your accountant, tax advisor, or lawyer. No client relationship is created by your use of this material. Always seek advice from qualified professionals who understand your particular circumstances before acting on any information contained herein.
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