There are many things a business can claim as a tax deduction under reasonable circumstances. Here are a few Canadian small business tax credits you may not have considered.

If you’re a small business in Canada, then tax time can be particularly hard on both your bottom line and your stress levels. However, if you want to be sure that your taxes are as gentle on you as possible this year, then the following are three things you need to be aware of before you file.

1. Health Spending Account

If you are an incorporated small business owner, you may be eligible for a health spending account tax credit. Through an HSA plan, you can take after-tax personal medical expenses, and turn them into before-tax business deductibles. This particular strategy can also apply to a business’s employees if they have these accounts as part of their employee benefits package, which is another reason business owners should consider embracing this option.

2. Apprenticeship Job Creation Tax Credit

The idea behind this tax credit is to get more tradespeople into the workforce, which is why it offers a tax credit of up to $2,000 per individual who is hired within 2 years of completing an apprenticeship program for a trade. The amount you can claim is 10 percent of the salaries and wages you pay to the individual in question. Details on the tax credit, as well as which particular apprenticeship programs are recognized by the Canadian government as legitimate options, may be found on the Apprenticeship Job Creation Tax Credit page.

3. Home Business Tax Deductions

If you run your business out of your home, chances are good that you’re already aware that you can claim some things when tax time comes around. A portion of your power bill, for example, in order to keep your business running, and a portion of your heating bill so that you can keep yourself warm in the winter time.

But you may not be claiming the full extent of possible deductions, if you’re operating out of your home.

For example, you might be able to claim a part of your mortgage interest as a business expense. Or, since you probably clean your home office the same way you do the rest of your home, you might be able to claim a cost of the cleaning supplies. The specifics will vary, but you should take with an accountant to make sure you’re getting everything you can with this particular tax credit.

E&E Professional Accountants has years of experience in assisting businesses with their accounting needs. We are founded and managed by an experienced corporate auditor and a former CRA tax auditor. Feel free to contact us for assistance with all your accounting and bookkeeping needs.