Filing taxes for SkipTheDishes in Canada

If you’re an aspiring or current delivery driver with SkipTheDishes, taxes are one of the most important things you’ll need to manage as an independent contractor. 

Read on to learn more about registering for a GST/HST number, how to calculate your income tax, and the various tax deductions you can claim. 

How to register for a GST/HST number

In Canada, most businesses are required to collect and remit goods and services tax (GST)/harmonized sales tax (HST) to the Canada Revenue Agency (CRA). 

As a delivery driver on the Skip Network, once you earn $30,000 or more within a quarter or four consecutive calendar quarters, you’ll need to register for a GST/HST number. 

You can register for a GST/HST number through the Government of Canada’s website. Once you have opened an account, you’ll be responsible for collecting and paying back the GST/HST to the CRA. 

The reporting period can be monthly, quarterly, or annually, usually based on your annual revenue. Generally, once you collect $3,000 or more in taxes, you must remit every quarter using the CRA’s website. 

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SkipTheDishes summary of earnings report 

To help with income tax filing with SkipTheDishes, the company will send a Summary of Earnings to all couriers by March 1. Alternatively, you can visit the Courier Portal to view your earning statements. 

The report will show stated tips and gross payments. It doesn’t include any deductions for taxes. So, setting aside 20% to 25% of your earnings is good practice when paying taxes. You may also consider seeking professional advice from a tax expert to ensure you’re filing your tax return accurately. 

Example of calculating your taxable income 

Here’s a scenario to explain how this works: 

Part 1 - Income & Expenses

Let’s say you earned $20,000 in gross income from making deliveries as a Skip driver.

Your total expenses were $2,000. This included costs from fuel, maintenance, and lease payments.

Part 2 - Business portion

Your total mileage was 10,000 kilometres, where 3,000 kilometres was for food deliveries. 

This equals 30% of the business portion you can claim (3,000 / 10,000 = 30%).

You can claim 30% of your total expense, which equals $600 ($2,000 x 30% = $600).

Part 3 - Net income

Therefore, your net income is $18,400 ($20,000 gross income - $600 business expenses = $18,400). This amount will be taxable when you file your tax return.

Tax forms and deadlines

When filing taxes for SkipTheDishes, you must complete Form T2125 “Statement of Business and Professional Activities” to report your SkipTheDishes earnings. For those in Quebec, you’ll be required to fill out Form TP-80-V.

Self-employed individuals are required to file their tax return by June 16, 2025 (since June 15 falls on a Sunday). However, if you owe any taxes, you’ll need to pay them by April 30, 2025. 

List of tax deductions you can claim

If you use your vehicle for business and personal use, you can only claim the business portion of your expenses. Here’s a list of typical vehicle expenses you can deduct from your tax return: 

• Mileage
• Fuel/Electricity
• Interest payments on a car loan
• Lease payments
• Insurance
• Registration/licensing costs
• Capital Cost Allowance (CCA)
• Repairs and maintenance

Additional tax deductions to consider

Here are more examples of business expenses to claim when filing taxes for SkipTheDishes:

• Mobile phone plan: talk, text, and data plan.
• Car accessories: phone charger, phone holder, or dashcam installation.
• App charges: service fees that SkipTheDishes charges.
• Office supplies: pens, pencils, stationary.
• Other expenses: parking fees and toll charges. 
• Administrative fees: bank charges, interest payments. 
• Professional fees: legal and accounting fees.

Tips on keeping track of your receipts

As a solopreneur, you’ll want to stay organized with your record keeping so that it makes tax filing time go smoothly. You can do this by keeping the physical copy of all your receipts in one place and taking digital photos of them. 

When it comes to mileage tracking, you’ll need to track your total kilometres and business kilometres while driving throughout the year. Although you can manually record your trips in a logbook, our mileage tracking app is a faster and more efficient way to track your mileage. 

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