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freelance without VAT: bill, invoice
Thread poster: Alice Zuzek

Alice Zuzek  Identity Verified
Slovenia
Local time: 00:36
Slovenian to Italian
+ ...
Sep 29, 2007

hello everyone!
I red a lot about taxation in the last few hours and am a bit confused. If I am, say, an occasional translator (meaning that I don`t charge VAT), am I suppose to invoice my client? If so, how di I do that?
and what is the withholding tax? What sort of fiscal considarations, if any, should I bear in mind when offering my rates?
in short, how do you start being a freelancer without breaking the law?
Thank you very much for any clarification!


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Rimas Balsys  Identity Verified
Local time: 15:36
Member (2006)
French to English
VAT registration Sep 29, 2007

I'm surprised you haven't done a search on google etc for your question. Try http://www.bytestart.co.uk/content/19/19_1/what-is-a-sole-trader.shtml
In short, you don't need to register for VAT unless you anticipate your annual gross income hitting £64k/yr (you can register at lower income if you want but don't have to). If you're not VAT registered, you don't charge VAT and can't claim VAT back. It's as simple as that. As for invoicing, you make out an invoice and indicate somewhere on it something like "VAT not applicable" or "VAT not charged. Though of course what you do need to do is declare your income to Internal Revenue. Good luck. R
(Also, and I'm not being funny, don't make spelling or grammar mistakes like the ones in your messsage.


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LuciaC
United Kingdom
Local time: 23:36
English to Italian
+ ...
Inland Revenue Sep 30, 2007

Everthing is explained on their website.
http://www.hmrc.gov.uk/

or you can phone them, they are very kind.


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Alice Zuzek  Identity Verified
Slovenia
Local time: 00:36
Slovenian to Italian
+ ...
TOPIC STARTER
thx Sep 30, 2007

Thank you very much!

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Armorel Young  Identity Verified
Local time: 23:36
Member (2004)
German to English
Don't confuse VAT and income tax Sep 30, 2007

As an occasional translator you won't come anywhere near the VAT threshold, so you won't need to think about VAT. To stay within the law all you need to do is a) be registered as self-employed and b) declare your income for income tax purposes. So you need to be invoicing your clients for all the work you do and keeping invoices - and records of payment - as evidence of your earnings so that your income tax can be properly assessed at the end of the tax year. The only other thing you need to bear in mind is the need to pay National Insurance contributions at the self-employed rate. In a nutshell, that's it - in the UK it is very simple. And good luck.

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Alice Zuzek  Identity Verified
Slovenia
Local time: 00:36
Slovenian to Italian
+ ...
TOPIC STARTER
thx Oct 1, 2007

Thank you Armorel, that was exactly the sort of information I was after.

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Alice Zuzek  Identity Verified
Slovenia
Local time: 00:36
Slovenian to Italian
+ ...
TOPIC STARTER
not being funny or nufink ;-) Oct 1, 2007

sorry for not proof reading my posting, but I was under the assumption we were in a friendly environment. Next time I'll look over my shoulder! Thank you for the advice

I'm surprised you haven't done a search on google etc for your question. Try http://www.bytestart.co.uk/content/19/19_1/what-is-a-sole-trader.shtml
In short, you don't need to register for VAT unless you anticipate your annual gross income hitting £64k/yr (you can register at lower income if you want but don't have to). If you're not VAT registered, you don't charge VAT and can't claim VAT back. It's as simple as that. As for invoicing, you make out an invoice and indicate somewhere on it something like "VAT not applicable" or "VAT not charged. Though of course what you do need to do is declare your income to Internal Revenue. Good luck. R
(Also, and I'm not being funny, don't make spelling or grammar mistakes like the ones in your messsage. [/quote]

[Edited at 2007-10-01 14:15]


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lingomania
Local time: 08:36
Italian to English
In Italy Oct 4, 2007

For anyone working as a freelance in Italy, then "art. 1° DPR 68/72" regulates that.

Rob


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Alice Zuzek  Identity Verified
Slovenia
Local time: 00:36
Slovenian to Italian
+ ...
TOPIC STARTER
thx Oct 4, 2007

thank you Rob

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