How to Stay Ahead of CRA GST/HST Deadlines
Running a therapy practice means wearing many hats, from client care and charting to managing your books. It’s easy to miss a tax deadline, but recent CRA changes make that slip-up more costly than ever.
What’s Changed and Why It Matters
Starting June 2024, if you file your GST/HST return late, the CRA now charges a base penalty of 1% of the amount owing, plus 25% of that amount for each full month it’s overdue, up to 12 months.
Ignore a formal “Demand to File” letter, and you’ll get hit with an extra $250 fine, even if no tax is due.
GST/HST returns must now be filed electronically for any reporting periods starting in 2024. Submitting a paper return may result in a separate penalty between $100 and $250 depending on your revenue size.
Understand Your GST/HST Filing Deadlines
Most solo mental health practitioners will fall into one of these categories:
- Monthly or Quarterly Filers: Return and payment due one month after your reporting period ends
- Annual Filers: Return due three months after your fiscal year-end. If GST/HST owed exceeds $3,000, quarterly instalments may also apply
Even if you’ve always filed on time, one missed reminder could still trigger a penalty.
Why Falling Behind Can Hurt Your Practice
According to Statistics Canada, small businesses make up 86.7% of all employer firms in Canada and employ over 5.2 million Canadians, many of which are sole proprietorships like your therapy practice.
A single $250 penalty might not sound like much, but it could cut into funds meant for supervision, tools, or time off.
Simple Ways to Set Up Reminders
- Use digital calendars: Add recurring alerts to Google Calendar or Outlook
- Turn on CRA email notifications: Enable updates in your CRA My Business Account
- Integrate with your admin tools: While platforms like Jane or Owl Practice won’t file your taxes, they can help block time to review records or check in with your accountant
Automate Filing and Payment
If you’re managing everything manually, consider switching to accounting software that tracks GST/HST automatically.
Xero is a strong option for solo practitioners. It tracks GST/HST in real time and gives you everything you need to fill out your return in CRA’s online system, including a detailed report for your records.
You can also enable pre-authorized debit (PAD) in your CRA account. This allows the CRA to withdraw your GST/HST payment automatically on the due date.
Setting this up once can save you hours of work and stress each quarter.
If You Can’t Pay on Time, File Anyway
If you’re short on cash, file your return anyway. Late filings trigger penalties that are separate from interest. You might qualify for relief, so it’s worth asking.
Checklist: Keep Your GST/HST Filing on Track
- Mark your next due date in your calendar
- Turn on CRA email alerts
- Use Xero or other software with CRA Netfile integration
- Set up PAD for automatic payments
- Save filed returns in a secure, searchable folder
Final Thoughts
Your time and energy are best spent supporting your clients, not dealing with penalty notices. With the CRA’s new GST/HST rules, staying ahead of your deadlines is more important than ever. A few digital reminders and simple tools can help protect your income.
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