Self-Employed Income and Expense Log (T2125)

Most freelancers arrive at tax time with a bank export and no categories, then spend a weekend guessing. This log uses the CRA's own T2125 expense lines, so every row you enter maps directly onto the form you eventually file. It also keeps GST/HST collected and paid in separate columns, because the sales tax you collect was never your revenue and treating it as income is one of the most common self-employment errors.

What this template is for

A draft built around the details you need

Use this through the year to record business income and expenses in T2125 categories, and to keep GST/HST collected separate from revenue.

This log organizes numbers; it does not determine deductibility. Motor vehicle, home office, and meals and entertainment have their own rules and limits. Once your taxable revenue passes $30,000 over four consecutive calendar quarters you generally must register for GST/HST.

How to use it

  1. Add a row for every payment received and every business expense as it happens.
  2. Pick the T2125 category from the list rather than inventing your own.
  3. Record GST/HST collected and paid in their own columns, never inside the amount.
  4. For expenses used partly for personal reasons, enter the business-use percentage.

Make your own

Fill in your details, then download a PDF or an editable Word file.

DateDescriptionClient or supplierT2125 categoryIncomeExpenseGST/HST collectedGST/HST paidBusiness use %
  • Business or operating name is required.

Official forms for this task

Common questions

Which expense categories does the T2125 use?

Advertising, meals and entertainment, bad debts, insurance, interest and bank charges, business taxes and licences, office expenses, supplies, professional fees, management and administration fees, rent, maintenance and repairs, salaries and benefits, travel, telephone and utilities, fuel, delivery and freight, motor vehicle expenses, and capital cost allowance. Using these names now saves rebuilding the year in April.

Is the GST/HST I collect part of my income?

No. It is tax you collected on the government's behalf and will remit. Recording it inside revenue inflates your income and your tax bill. Keep it in its own column, and track GST/HST paid so you can claim input tax credits against it.

When do I have to register for GST/HST?

Generally once your worldwide taxable revenue exceeds $30,000 over four consecutive calendar quarters. You can register voluntarily earlier, which lets you claim input tax credits on business purchases from the start.

How do I handle an expense I use for both business and personal?

Enter the full amount and the business-use percentage. A phone plan used 60% for work is a 60% deduction, and the CRA expects you to be able to explain how you arrived at that figure.

Do gig platform earnings count?

Yes. Rideshare, delivery, and freelance marketplace income is business income reported on the T2125, whether or not the platform issues a slip. Rideshare drivers must register for GST/HST from their first fare regardless of the $30,000 threshold.

How this template is maintained

Last reviewed
Reviewed by
Thomas TremblayFounder and editor, Canooq

Sources

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