What to include in a receipt

Hi Everyone.

Just a quick question on your policies surrounding this. I have always been 100% by the books in regards to issuing all receipts for any and all care I have provided to my clients. For the first time in 5 years i have a family that is constantly late. Late to pick up, late payments, generally not an organized family. I charge them all the associated "late fees" for all of this. As frustrating as it is some days for them always to be late and waiting to be paid days after I should have been I just accept thats the way they are and no amount of talking to them or reminding them will work so why stress out about it. The issue is, do I include all these extra fees in their receipt? I look at these fees not for the care of their child but more of a bonus for me for their unorganized lifestyle. My gut tells me that I should claim every dollar they give me and give them a receipt for it. What would/do you do in regards to "other fees" other than for childcare?

I believe you do have to claim these amounts, so yes, they should be on the receipt. The CRA will probably consider this as your income. However, if you aren't going to put these amounts on the receipt, like you are considering them a gift, you should maybe make that clear in your contract. So anyone who is paying the extra fee knows they won't get to claim it as an expense.

Yes, I think you are supposed to claim the extra fees. I think if you also charge for field trips, sunscreen, bug spray etc, you are to claim that too.

Saying that, I've only had one family pay the late fee 3x and I didn't include....just because I plain forgot about it! I doubt they claimed it anyways as they would have likely just claimed the receipt I gave them. From now on, when a family pays a fee for whatever reason, I will mark it on their payment sheet so I don't forget!

There two different aspect to this question.

One is what YOU declare as your income and the answer to that is ALL fees. Late payment fee, late collection fee, all money paid to you as result of your business and so must all be declared as your income to CRA.

Second part is what is write on THEIR tax receipt. My accountant clear that tax receipt for client is so they can claim their child care fees. They do not get to claim extra fees they had to pay because they not arrive on time or pay promptly. Those are not costs of care but costs of them fail to meet contracted terms, penalties not fees for service. Their receipt should only detail the actual fees.

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Originally Posted by Suzie_Homemaker

There two different aspect to this question.

One is what YOU declare as your income and the answer to that is ALL fees. Late payment fee, late collection fee, all money paid to you as result of your business and so must all be declared as your income to CRA.

Second part is what is write on THEIR tax receipt. My accountant clear that tax receipt for client is so they can claim their child care fees. They do not get to claim extra fees they had to pay because they not arrive on time or pay promptly. Those are not costs of care but costs of them fail to meet contracted terms, penalties not fees for service. Their receipt should only detail the actual fees.

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That seems unfair though. We have to claim and PAY tax on all fees but they don't claim all fees. If they don't or can't claim it then why should we pay tax on it.

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Originally Posted by babydom

That seems unfair though. We have to claim and PAY tax on all fees but they don't claim all fees. If they don't or can't claim it then why should we pay tax on it.

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Because all income is declared to CRA otherwise it's fax fraud. But the child care tax credit for parent is to assist with cost of child care when they working/in school, not the cost of being disorganised in their timing or financial matters.

Hmmm interesting. Ok. Thank u :)