Your first year on your own is when good habits are cheap and bad ones get expensive. Open a separate account, track every dollar from day one, know your profession’s HST rules, set money aside for tax, and learn your deadlines. Do those five things and your first tax season is a non-event.
Going out on your own is exciting, and the tax side is the part nobody trained you for. This is the short, practical checklist we wish every new clinician had on day one.
1. Separate your money
Open a dedicated bank account for the practice and run all your income and expenses through it. Mixing business and personal money is the single biggest cause of messy first-year books. A separate account makes everything that follows easier.
2. Track income and expenses from the start
Do not wait until tax time to figure out what you made and spent. Log it as you go, even something as simple as a spreadsheet. Our free tracker is built for exactly this, so your numbers are ready when you need them instead of buried in a shoebox.
3. Know how your profession is taxed
This is the one most new clinicians get wrong, because it flips by profession:
- Physiotherapists are HST-exempt. You never charge HST, and you record expenses tax-included.
- Massage therapists are taxable. You watch the $30,000 threshold and register for HST once you cross it, then claim HST back on your costs.
If you are not sure which rules apply to you, that is the first conversation to have. Read why physiotherapy is exempt but massage therapy isn’t for the full picture.
4. Set money aside for tax
Nobody is taking tax off your income anymore, so you have to. A good habit is to move 25 to 30 percent of your profit into a separate savings account as you earn it. Then tax time is a transfer, not a scramble. We cover the details in how much to set aside for taxes.
5. Learn your deadlines
Two dates matter in your first year as a self-employed practitioner:
Yes, the filing deadline is later for the self-employed, but any balance you owe is still due April 30. That is why setting money aside matters, so the payment is ready before the filing is even done. If you are registered for HST, you will have a separate filing for that too.
6. Keep your receipts
Hold on to receipts and statements for six years. A tidy digital folder or a photo of each receipt is enough. You do not need a filing cabinet, just a system you will actually use.
7. Claim what you’re entitled to
From your first year, you can deduct the costs of running your practice, including a home office and the business share of your vehicle. Start the habits now and you will not miss anything. See the full lists for physiotherapists and massage therapists.
8. Talk to someone before you guess
A short conversation early saves a messy cleanup later. You do not need a full service on day one, but knowing your setup is right from the start is worth a lot. That is exactly what our power hour is for.
Frequently asked
Open a separate bank account for the practice and run all income and expenses through it. Then start tracking from day one. Those two habits make your entire first tax year easier.
Any tax you owe is due April 30, but your return is not due until June 15 as a self-employed person. Set money aside through the year so the payment is ready before you even file.
It depends on your profession. Physiotherapists are exempt and never register. Massage therapists register once they pass $30,000 in revenue, though some choose to register earlier to claim HST back on startup costs.
Six years. A digital folder or a photo of each receipt is enough, you do not need paper copies. Keep a system simple enough that you will actually use it.
This article is general information for Canadian health practitioners, not advice for your specific situation. Your first-year obligations depend on your profession and circumstances, so confirm with an accountant.