Tax guide for Skip couriers — income reporting, deductions, HST rules, and more.
SkipTheDishes couriers are independent contractors. Skip does not deduct income tax, CPP, or EI from your earnings. You are responsible for all taxes. Skip provides an annual T4A for couriers earning $500 or more, but you must report all earnings — with or without a T4A.
Income includes: base delivery pay, tips, and any bonuses or promos. All must be reported on T2125.
Once your total taxable self-employment revenue (Skip + any other gig income) exceeds $30,000 over four consecutive calendar quarters, you must register for HST/GST. Before that threshold, registration is voluntary but may be beneficial if you have significant business expenses (you can then claim ITCs).
| Expense | Notes |
|---|---|
| Vehicle mileage | 70¢/km first 5,000; 64¢/km after |
| Fuel (actual cost method) | Business-use % only |
| Car insurance (business portion) | Need to confirm insurance covers delivery |
| Vehicle maintenance | Oil changes, tires — business-use % |
| Insulated delivery bag | 100% deductible |
| Cell phone | Business-use % of monthly plan |
| Phone mount | 100% deductible |
| Bike maintenance | If delivering by bike |
| Accounting fees | 100% deductible |
All Skip earnings go on Form T2125, Statement of Business Activities. Activity description: "Food Delivery Courier." Enter gross income from Skip, then list expenses. Net income from T2125 flows to Line 13500 of your T1. CPP contributions are calculated on Schedule 8 and are partially deductible.
File your T1 by June 15 if self-employed (but taxes owing are due April 30).
Self-employed individuals pay both employee and employer CPP. In 2025, the combined rate is 11.9% on net self-employment income up to approximately $71,300. CPP2 applies on net income between ~$68,500 and ~$73,200 at an additional 8% rate. The employer portion (half of base CPP) is deductible on line 22200.
If you owe more than $3,000 in taxes beyond what's withheld at source, CRA expects quarterly installment payments. Installment due dates: March 15, June 15, September 15, December 15. Interest accrues daily if you miss payments. A good practice: transfer 27–30% of every Skip payout to a dedicated tax savings account.
The CRA requires a mileage log to support vehicle expense claims. Record for each delivery shift: date, starting odometer, ending odometer, areas delivered, and purpose. Apps like MileIQ, Everlance, or a simple spreadsheet work well. SkipTheDishes does not provide delivery mileage records — you must track this yourself.
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Get KOHO Free — Use Code 45ET55JSYAInformational only. Not tax or legal advice. Consult a CPA for your specific situation.