1. Do I Need to Report My SkipTheDishes Income?
Yes! As a self-employed individual, you must report all the income you earn from deliveries. SkipTheDishes does not deduct taxes from your payments, so it’s up to you to track and report your earnings.
To report your income, enter the total amount you earned as self-employment income on your tax return using Form T2125 (Statement of Business or Professional Activities).
2. Keeping Track of Your Income and Expenses
SkipTheDishes provides a T4A slip reporting your total income. Your Annual Income Summary includes income, tips, and kilometers driven, helping you track expenses and deductions.
3. What Expenses Can Couriers on SKIP Claim?
As a self-employed courier, you can deduct eligible expenses to reduce your taxable income. Keep all receipts and records in case the CRA asks for proof.
Common Deductible Expenses:
🚗 Vehicle Expenses: If you use your car for deliveries, you can claim a percentage of:
Gas
Insurance
Lease payments or loan interest
Maintenance and repairs
Vehicle depreciation (Capital Cost Allowance - CCA)
💡 Important: Only claim the portion of expenses related to your deliveries. Keep a logbook to track kilometers driven for work vs. personal use.
📱 Phone & Internet Expenses: If you use your phone for deliveries, you can deduct a percentage of:
Phone bill (data, calls, and text plan)
Internet (if used for work-related tracking and navigation)
🍔 Other Expenses:
Tolls and parking fees (but NOT traffic tickets)
Delivery bags, hot bags, and gear purchased for work
Fees paid to SkipTheDishes (e.g., service fees, app fees)
4. How to File Your Taxes as a Courier on SKIP
1️⃣ Report Your Income: Enter your total delivery earnings on Form T2125 (Statement of Business or Professional Activities).
2️⃣ Deduct Your Expenses: List and subtract eligible business expenses from your income.
3️⃣ Pay CPP Contributions: Since no CPP (Canada Pension Plan) contributions are deducted from your SkipTheDishes income, you must calculate and pay these yourself when filing your return.
4️⃣ Pay Your Taxes on Time: Since no taxes are withheld from your payments, you may need to make quarterly tax installments if you owe more than $3,000 in taxes at year-end.
5. Should I Register for GST/HST?
If your total self-employment income (from SkipTheDishes and any other business activities) exceeds $30,000 in a 12-month period, you must register for a GST/HST number and start collecting and remitting sales tax.
Even if you earn less than $30,000, you can voluntarily register to claim Input Tax Credits (ITCs) on business expenses like gas and phone bills.
6. Why This Matters
Filing your taxes correctly ensures you avoid penalties and take full advantage of deductions to reduce your tax bill. Keeping organized records and understanding your tax obligations will make tax season stress-free!
🚗 Start your tax return today with CloudTax and maximize your savings! 😊