I am from Ottawa and sent to Toronto for IT contract. Can my host firm pay me an hourly rate and pay my expenses as an hourly per diem of $20/hr to cover my expenses?

I am from Ottawa and sent to Toronto for IT 6 month contract, once the contract is over I will return to Ottawa. Can my host firm pay me an hourly rate and pay my expenses as an hourly per diem of $20/hr to cover my expenses?
Will I need to collect HST on the $20 per diem amount?
Can I claim car repairs, my car broke down once I arrived in Toronto?

Thanks
L

Answer

Your moving expenses can be tax deductible as long as you move for work, and you moved at least 40 km.
Link to CRA website: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/menu-eng.html

The following link is a link to the guide for professional income, meaning individual working on contract.  You will be required to complete form T2125 on your tax return.  You will be able to see what vehicle expenses you are able to claim. It include: maintenance and repair, licencing and registration, mileage you drive for work.

Make sure you keep all your receipts, for moving expenses and business / work.
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