Payment through ritenuta d'acconto with a British translation agency
Thread poster: Karen Rossi

Karen Rossi  Identity Verified
United Kingdom
Local time: 12:46
English to Italian
+ ...
Jun 14, 2013

Hi everyone!!
I am pretty new in the field of British translation agencies. It's my very first time!!
I was hired by a British translation agency but I haven't a vat registration number, since my incomes per year aren't more than € 5000 and therefore I use the "ritenuta d'acconto" for clients' payments. Well I tried to explain it to them and this is what I got as a reply from them:


Most of our translators are not VAT registered. As for withholding tax document, we have never worked with this before. What exactly do you mean – as far as I know, this applies for employees, which is not this case. I will ask our accountant as well, but I would appreciate it if you could give me more details. All our suppliers are freelancers and responsible to pay their own taxes.


What do you think about this? How does it work in Uk when it comes to this kind of situations??
How should I behave in this case??

Thank you in advance for your help!!


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Charlotte Farrell  Identity Verified
United Kingdom
Local time: 12:46
Member (2013)
German to English
+ ...
Freelancers Pay Their Own Taxes in the UK Jun 14, 2013

In the UK, employees pay tax through PAYE (pay as you earn), which means that tax is withheld by your employer and you only receive your post-tax earnings. For freelancers, you have to fill in a tax return once a year and pay the appropriate amount of tax yourself, but your clients don't withhold any of it for you. VAT is a different system and only applies if you earn above a certain amount to opt to register for it voluntarily.

Is there no way of you receiving full payment from the UK agency and then paying the appropriate tax on it in Italy yourself? No British agency would be able to help you with taxes in this way as, even if they understand it, they wouldn't have the means to do so.


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Sheila Wilson  Identity Verified
Spain
Local time: 12:46
Member (2007)
English
+ ...
Perhaps the Spanish and Italian systems are the same Jun 14, 2013

I've never had a Spanish client, so I can't talk from experience, but I know that a Spain-based freelancer working for a Spanish company has to deduct about 20% from the invoice, as the client pays this amount directly to the government. Quite a neat alternative that ensures that (a) the tax people get their hands on your money, and (b) the end-of-year tax bill isn't too crippling. But when we work for private Spanish individuals or companies outside Spain (as I do), we invoice for 100%. Tax gets paid later, on the basis of our quarterly and annual returns.

I certainly can't, in fact I wouldn't want to, ask my clients in the UK, France, the USA... to pay my tax bill.


Edited for clarity.



[Edited at 2013-06-14 17:54 GMT]


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Christel Zipfel  Identity Verified
Member (2004)
Italian to German
+ ...
I think you should post Jun 14, 2013

in the Italian forum, but first of all do a forum research, because this has been asked pretty much before.

Of course nobody outside Italy is supposed to pay the taxes for you, this is simply impossible!

[Bearbeitet am 2013-06-14 18:59 GMT]


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Karen Rossi  Identity Verified
United Kingdom
Local time: 12:46
English to Italian
+ ...
TOPIC STARTER
Thanks a lot to all of you!! Jun 14, 2013

After having examined all the related topics and discussions on the Italian forum, I know the only thing I am supposed to do is to issue a payment receipts...

Thank you all very much!!!


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Payment through ritenuta d'acconto with a British translation agency

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