As a self-employed physiotherapist your treatment is HST-exempt, which changes one big thing: you record every expense at the full price you paid, tax included, because you cannot claim the HST back. Past that, you can deduct most of what it costs to run your practice.
Self-employed physiotherapists leave money on the table for two opposite reasons. Some miss deductions they are entitled to. Others try to claim things that do not work for an exempt practice. Here is the clear version.
Start with the HST twist
Because physiotherapy is exempt, you do not charge HST, and you cannot claim it back on your purchases. So unlike a lot of small businesses, you do not separate the tax out of your expenses. You just record what you actually paid, tax included. That is your real cost, and that is what you deduct. Simple, once you know it.
What you can deduct
If it is for the practice, it generally comes off your income:
- Your College of Physiotherapists registration and your association or membership dues
- Professional liability insurance
- Continuing education: courses, certifications, conferences, and the travel to get there
- Treatment supplies and clinical consumables
- Clinic rent, or the room or percentage split you pay
- Practice software and your booking or records system
- Advertising, your website, and business cards
- The business share of your phone and internet
- Bank fees and payment processing fees
- Professional fees, including what you pay your accountant
Your home office
If you do your billing, notes, and admin from home, or you see clients there, you can deduct a portion of your home costs. That is a share of your rent or mortgage interest, utilities, insurance, and internet, based on how much of your home is your work space. It is easy to overlook, and it adds up year after year.
Your vehicle
If you drive between clinics or out to see patients, those kilometres count, as long as you keep a log. A phone app is fine. Your commute to one regular workplace does not count, but the extra business trips do.
Numbers vary, but the point holds. A physiotherapist who tracks well often has more to deduct than they expected, which means less tax owing.
Big purchases spread out
A treatment table, a piece of equipment, or a laptop is usually claimed gradually over several years rather than all at once. It is not lost, it just does not all land in year one. We sort out which purchases work that way.
One more worth asking about
Once your practice is consistently profitable, incorporating can lower your tax bill and let you keep more inside the business. It is not right for everyone, and not right too early. It is a numbers question, and one worth putting to us directly. You can see what working together looks like on our pricing.
Frequently asked
No. Physiotherapy is HST-exempt, so you never charge it on treatment. You also cannot claim it back, so you record expenses at the full amount you paid.
Usually, yes. If your home is where you handle admin and billing, or you see clients there, you can deduct a share of your rent or mortgage interest, utilities, insurance, and internet based on your work space.
Only when the math says so. Once you are consistently profitable it can save real tax, but it is not free and not right for everyone yet. We will look at your numbers and tell you honestly.
Yes, for six years. A photo in a phone folder is enough. Our free template gives you a place to log income and expenses as you go.
This article is general information for Canadian physiotherapists, not advice for your specific situation. What you can claim depends on your circumstances, so confirm with an accountant before you file.