Upwork’s Latest Update Screws Over Small Canadian Freelancers

And I’ve had enough of it.

Image via Unsplash

If you logged into Upwork recently, you may have noticed an update requiring your Business Number or they’ll start adding taxes on your freelancing income. Now, that wouldn’t be so bad, everyone should pay taxes.

However, legally they are ruining it for people who earn less and people who freelance as a side hustle. And so, I’m personally choosing to finally leave Upwork. There are a host of reasons I’ll share, but let’s start with the current problem.

Canadian Tax Laws

In Canada, if you earn less than $30,000 per year as a freelancer you aren’t required to collect taxes from your clients because you have a “small supplier exemption.” Last year I only made $4000 on their platform, so why are they collect taxes on my behalf?

The other issue here is once you start collecting taxes, you can’t go back. So let’s say I made $30,000 this year but make $10,000 next year freelancing. I still have to collect those taxes.

It’s a weird move on Upwork’s part and I don’t agree with it. I will likely cross that threshold later this year, but freelancing as a career can be unpredictable. If I lost all my clients tomorrow and went back to a regular job, I would be paying all…