Management Consultant

Tax guide for Canadian independent business consultants and management advisers

Allowable Expenses

  • Home office — Proportional share of rent/mortgage interest, utilities, property taxes
  • Professional memberships — CMC-Canada, management consulting associations
  • Client entertainment (50%) — Business meals and entertainment — only 50% is deductible
  • Travel to client sites — Vehicle mileage log, flights, accommodation, meals (50%) while travelling
  • Professional development — Business courses, MBA modules, leadership workshops
  • Professional memberships — CMC-Canada, Canadian Chamber of Commerce, or industry association annual dues

Tax Tips

  • Business meals with clients are deductible at 50% — document the business purpose and who attended
  • If you travel regularly to client offices, keep a mileage logbook for every business trip
  • Professional liability (E&O) insurance is essential and fully deductible
  • Subcontracted work from other consultants is a deductible business expense — get invoices

Frequently Asked Questions

How do I claim business travel as a Canadian consultant?

Track all business travel using a mileage logbook (for driving) or receipts (for flights/trains/accommodation). The business-use portion of vehicle expenses is deductible. Meals while travelling for business are 50% deductible. Keep all receipts and notes on the business purpose.

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