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Can we separate out the phrase "Consultant, freelancer or independent contractor"? It encompasses both experts with deep knowledge in some lucrative niche, as w

Can we separate out the phrase "Consultant, freelancer or independent contractor"? It encompasses both experts with deep knowledge in some lucrative niche, as well as wordpress devs on upwork making $5/day. Not to mention "normal" programmers who are indistinguishable from employees, but get paid hourly for some reason (often because they are in another country, but often because they are being taken advantage of).

Thoeu388 3y ago
Many programmers prefer hourly pay over proper employment. As contractor, I can put hardware, my rent, and leisure travel into expenses. Real taxation is 15% versus 45%. I can have multiple clients...
- eloisius 3y ago
  I’m surprised you’re able to expense your rent, but otherwise I agree. I like being free to arrange my schedule how I like. I’ve traveled almost 3 months out of 7 this year, take long weekends to go diving, etc. When I was W-2, even when I ostensibly had unlimited PTO it always felt like I was begging for my own time.
  - Thoeu388 3y ago
    Technically I still live with my parents, but one of my clients requires me to maintain office 300km away. There is no trick, I asked at tax office if that would be OK.
  - xmcqdpt2 3y ago
    In Canada there is some complicated formula for how much you can expense rent, based on the floor size of your office compared to that of the living space in your home and how much you use it for working etc. When my partner applied for it, it ended up being a ridiculously small amount.
    - ghaff 3y ago
      My accountant in the US always recommended against it because it is a red flag. And, yeah, it would be one room in my house and not dedicated for work purposes so it wouldn't be a big deduction. When I had a part-time software business it made more sense to just find reasonable deductions I could offset against my revenues.
- pluijzer 3y ago
  I am pretty sure that putting leisure travel on your expenses is considered fraud.
  - deleted 3y ago
    [deleted]
  - Thoeu388 3y ago
    Not really. I can visit conferences, apply for new gigs, market research... There are limits, but if you are not greedy, it is perfectly fine. Bringing gf, renting cars, beach stay... would ruin it.
    - quickthrower2 3y ago
      > Bringing gf, renting cars, beach stay... would ruin it. Not only that, it might not be tax deductible!
      - jagged-chisel 3y ago
        Thought that’s what they meant by “ruin it.”
        deleted 3y ago
        [deleted]
        thrawa8387336 3y ago
        [flagged]
        TremendousJudge 3y ago
        it was a boomer "ball and chain" joke
        quickthrower2 3y ago
        Sorry it was a lame joke. You shouldn't be downvoted (downvote my joke instead people)
baobabKoodaa 3y ago
Including "consultant" in this list muddies the waters very badly. Freelancing and independent contracting are forms of entrepreneurship, whereas consulting is often (not always) a form of traditional employment where a regular company gives you a regular paycheque.

Thoeu388 3y ago

Many programmers prefer hourly pay over proper employment. As contractor, I can put hardware, my rent, and leisure travel into expenses. Real taxation is 15% versus 45%. I can have multiple clients...

eloisius 3y ago
I’m surprised you’re able to expense your rent, but otherwise I agree. I like being free to arrange my schedule how I like. I’ve traveled almost 3 months out of 7 this year, take long weekends to go diving, etc. When I was W-2, even when I ostensibly had unlimited PTO it always felt like I was begging for my own time.
- Thoeu388 3y ago
  Technically I still live with my parents, but one of my clients requires me to maintain office 300km away. There is no trick, I asked at tax office if that would be OK.
- xmcqdpt2 3y ago
  In Canada there is some complicated formula for how much you can expense rent, based on the floor size of your office compared to that of the living space in your home and how much you use it for working etc. When my partner applied for it, it ended up being a ridiculously small amount.
  - ghaff 3y ago
    My accountant in the US always recommended against it because it is a red flag. And, yeah, it would be one room in my house and not dedicated for work purposes so it wouldn't be a big deduction. When I had a part-time software business it made more sense to just find reasonable deductions I could offset against my revenues.
pluijzer 3y ago
I am pretty sure that putting leisure travel on your expenses is considered fraud.
- deleted 3y ago
  [deleted]
- Thoeu388 3y ago
  Not really. I can visit conferences, apply for new gigs, market research... There are limits, but if you are not greedy, it is perfectly fine. Bringing gf, renting cars, beach stay... would ruin it.
  - quickthrower2 3y ago
    > Bringing gf, renting cars, beach stay... would ruin it. Not only that, it might not be tax deductible!
    - jagged-chisel 3y ago
      Thought that’s what they meant by “ruin it.”
      - deleted 3y ago
        [deleted]
      - thrawa8387336 3y ago
        [flagged]
      - TremendousJudge 3y ago
        it was a boomer "ball and chain" joke
      - quickthrower2 3y ago
        Sorry it was a lame joke. You shouldn't be downvoted (downvote my joke instead people)

baobabKoodaa 3y ago

Including "consultant" in this list muddies the waters very badly. Freelancing and independent contracting are forms of entrepreneurship, whereas consulting is often (not always) a form of traditional employment where a regular company gives you a regular paycheque.