UK-based with no VAT number - working with Czech agencies
Thread poster: Jennifer Gordon Taylor

Jennifer Gordon Taylor  Identity Verified
United Kingdom
Local time: 02:58
Czech to English
+ ...
Sep 2, 2011

Hello All,

In a couple of weeks I will be returning 'home' to Manchester after 11 years abroad. I'll be registering to work self-employed and have read a lot of helpful threads on how to go about this, and how to deal with the no VAT number issue (thanks!). I don't intend to register for VAT if I can help it, although my experience with it here in Portugal has actually been pretty painless.

I currently work with several Czech agencies and I wondered if you fellow UK-based translators had any experience with them specifically. I need to notify them of my move and it would be great if I could already tell them exactly what they need to do about this at their end, and what I should put on my invoices.

Thank you in advance for any advice you can offer,
Jenny


Direct link Reply with quote
 

Tom in London
United Kingdom
Local time: 02:58
Member (2008)
Italian to English
Is that our business? Sep 2, 2011

Jennifer Gordon wrote:

Hello All,

In a couple of weeks I will be returning 'home' to Manchester after 11 years abroad. I'll be registering to work self-employed and have read a lot of helpful threads on how to go about this, and how to deal with the no VAT number issue (thanks!). I don't intend to register for VAT if I can help it, although my experience with it here in Portugal has actually been pretty painless.

I currently work with several Czech agencies and I wondered if you fellow UK-based translators had any experience with them specifically. I need to notify them of my move and it would be great if I could already tell them exactly what they need to do about this at their end, and what I should put on my invoices.

Thank you in advance for any advice you can offer,
Jenny


Hi Jenny and welcome back to the UK, where everything tax-related is easier.



What your clients do at their end is surely not your problem? All you need to do is include suitable wording on your invoices to them. I always write "VAT not applicable in accordance with UK tax law" and I've always been paid in full.

It's up to the people at the other end, in their country and with their accountants, to work out what they need to do. I would not myself want to be involved in any of that - because it's likely that local requirements in that country (in your case the Czech Republic) will periodically change anyway.

I would expect translation agencies, who all tend to work internationally, to be aware of their own tax obligations.


[Edited at 2011-09-02 14:21 GMT]


Direct link Reply with quote
 

Jennifer Gordon Taylor  Identity Verified
United Kingdom
Local time: 02:58
Czech to English
+ ...
TOPIC STARTER
I agree, in part... Sep 2, 2011

Thanks for your reply, Tom. I've seen a lot of what you've written on the matter and I'm hoping that I will get to do the same, i.e. just putting that simple disclaimer on my invoices. Some of the agencies I work for I'd be happy to drop if they don't like it, but others I have long-lasting relationships with, and if they don't understand, I'd like to help them with it, or I could lose that business.

Unfortunately, I'm not currently in the position where I can drop any agency who doesn't like my new, laid-back VAT-free style and just stick with the 'easier' clients. So, if I can have a convincing argument for them to speak to their accountants and accept my situation with relatively little fuss, I'll be very happy, and that's why I'm asking - to see if anyone else has already experienced this and can point me in the right direction.


Direct link Reply with quote
 

Callum Walker  Identity Verified
United Kingdom
Local time: 02:58
Member (2010)
Russian to English
+ ...
As far as I'm aware you don't need to do anything specific Sep 2, 2011

I do some work for a Czech company and do not need to carry out any special measures relating to tax. The only thing I do is state on my invoice that I am not VAT registered (and hence no VAT is added to the final invoice) and that I am responsible for my own income tax here in the UK.

Agencies and other clients should have absolutely nothing to do with your personal income tax.

The only thing I have had to do is sign tax documents for certain countries stating that I deal with all my tax here in the UK. In this respect, I have filled out several W8-BEN forms for US companies (required for each new agency), and I also had to get a statement from Revenue and Customs that I was being taxed here for submission to a Portuguese company (... it took absolutely ages for HMRC to actually get round to stamping my documents!!).

So, as far as I'm aware, there isn't anything special you need to do, other than to tell HMRC that you are back and that you wish to be registered as self-employed.


Direct link Reply with quote
 

Tom in London
United Kingdom
Local time: 02:58
Member (2008)
Italian to English
Yes Sep 2, 2011

Callum Walker wrote:

I do some work for a Czech company and do not need to carry out any special measures relating to tax. The only thing I do is state on my invoice that I am not VAT registered (and hence no VAT is added to the final invoice) and that I am responsible for my own income tax here in the UK.

Agencies and other clients should have absolutely nothing to do with your personal income tax.

The only thing I have had to do is sign tax documents for certain countries stating that I deal with all my tax here in the UK. In this respect, I have filled out several W8-BEN forms for US companies (required for each new agency), and I also had to get a statement from Revenue and Customs that I was being taxed here for submission to a Portuguese company (... it took absolutely ages for HMRC to actually get round to stamping my documents!!).

So, as far as I'm aware, there isn't anything special you need to do, other than to tell HMRC that you are back and that you wish to be registered as self-employed.


Yes- what Callum said is more important. It's essential to become correctly registered with the UK authorities and at least for your first year, it's best to do this through a registered accountant, who will make sure it's all done properly and that your book-keeping accords with what the UK tax authorities would expect. After a year or two once you've got the hang of it, you could drop the accountant and do all your own bookkeeping and tax returns.


Direct link Reply with quote
 

Jennifer Gordon Taylor  Identity Verified
United Kingdom
Local time: 02:58
Czech to English
+ ...
TOPIC STARTER
Thanks Sep 2, 2011

Thank you, Callum. May the transition for me be as painless as you describe!

Tom, I did that when I moved to Portugal, and when I started freelancing in Prague in 2006, so I will probably do it again, only this time I have my parents (who have done paperwork for their small shop as far back as I can remember) to help as well! It's quite exciting really!


Direct link Reply with quote
 

Williamson  Identity Verified
United Kingdom
Local time: 02:58
Flemish to English
+ ...
Notice 7000/1 Sep 2, 2011

This topic has been discussed many times on the forums. Do a search for VAT or IVA and you will find answers to your questions.

Here is the link to HMRC
HMRC no so clear explanation of reverse charge/VAT changes 2011
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_PROD1_027316

I put VAT-exempt reference HCRC- Notice 7000/1


Direct link Reply with quote
 

Jennifer Gordon Taylor  Identity Verified
United Kingdom
Local time: 02:58
Czech to English
+ ...
TOPIC STARTER
But not specific to the Czech Republic... Sep 2, 2011

Williamson wrote:

This topic has been discussed many times on the forums. Do a search for VAT or IVA and you will find answers to your questions.

Here is the link to HMRC
HMRC no so clear explanation of reverse charge/VAT changes 2011
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_PROD1_027316

I put VAT-exempt reference HCRC- Notice 7000/1


Thanks for the link about the reverse charge, Williamson, although I don't see what mobile phones and chips have to do with translation!



However, as I said in my initial post, I have read through a lot of the posts, but I wanted to know if anyone had particular experience with Czech agencies, as that was information I failed to find.


Direct link Reply with quote
 
#JuliaC#  Identity Verified
Local time: 03:58
German to Italian
+ ...
I work for Czech agencies.. Sep 2, 2011

I'm Italian, live in Italy and work for Czech agencies. I do not have any VAT number and, as Tom in London said, I just write "VAT not applicable in accordance with Italian tax law". This in Italy, but I don't think there are many differences if we're talking about occasional collaborations which allows you not to register for VAT.

Giulia


Direct link Reply with quote
 

Williamson  Identity Verified
United Kingdom
Local time: 02:58
Flemish to English
+ ...
Reference VAT Sep 3, 2011

Jennifer Gordon wrote:

Williamson wrote:

This topic has been discussed many times on the forums. Do a search for VAT or IVA and you will find answers to your questions.

Here is the link to HMRC
HMRC no so clear explanation of reverse charge/VAT changes 2011
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_PROD1_027316

I put VAT-exempt reference HCRC- Notice 7000/1


Thanks for the link about the reverse charge, Williamson, although I don't see what mobile phones and chips have to do with translation!



However, as I said in my initial post, I have read through a lot of the posts, but I wanted to know if anyone had particular experience with Czech agencies, as that was information I failed to find.



The VAT-guide of HMRC

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent&id=HMCE_CL_000086&propertyType=document

you might find an answer to your question. .

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073863071&r.s=sl



If you are in the UK, Czech legislation does not apply to you.

[Edited at 2011-09-03 10:33 GMT]


Direct link Reply with quote
 

Jennifer Gordon Taylor  Identity Verified
United Kingdom
Local time: 02:58
Czech to English
+ ...
TOPIC STARTER
Thanks Giulia Sep 3, 2011

Your post and Callum's have reassured me it won't be that bad!

Direct link Reply with quote
 

Jennifer Gordon Taylor  Identity Verified
United Kingdom
Local time: 02:58
Czech to English
+ ...
TOPIC STARTER
Flexibility in relationships Sep 4, 2011

Williamson, thank you very much for taking the time to respond to my question and sending me the links for HMRC, however I think you've missed the point I was making. Put simply, I believe that a functioning business relationship needs both parties to be happy.

I totally understand that I only need to abide by UK laws with regard to how I conduct my business. The thing is, the agencies I work with in other countries have to abide by their own laws too, and sometimes that means the two systems clash. If this is the first time they've come across this situation, they and/or their accountant may find it complicated, so if I can point them in the right direction, I will!

So far, I've spoken to one agency about this, and they believed that it was absolutely necessary for me to have a VAT number or I could face a fine. From information I had found on proz.com and the HMRC website, I explained to them that it isn't the case, and it looks like I'll be allowed to put the disclaimer, although they still seem uneasy about it.

The information that Giulia and Callum have given me is very reassuring, and I am hoping that it will be as painless as that with the rest. The reason I asked about it on proz was to find out in advance what I would be facing.

Moving is hard enough as it is, and this will be the 3rd country in which I'm registering to be self-employed in the space of 5 years. I'm just looking to do it as painlessly as possible!

Enjoy the rest of your weekend!


Direct link Reply with quote
 

Karen Sexton  Identity Verified
Bermuda
English to Portuguese
+ ...
Useful site for VAT matters in Europe Sep 4, 2011

Hi Jennifer,

In all matters related to VAT in Europe, I found the following site very useful and informative:
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm

Hope you will find there necessary answers to your questions.

Good luck!

Karen


Direct link Reply with quote
 


To report site rules violations or get help, contact a site moderator:


You can also contact site staff by submitting a support request »

UK-based with no VAT number - working with Czech agencies

Advanced search







TM-Town
Manage your TMs and Terms ... and boost your translation business

Are you ready for something fresh in the industry? TM-Town is a unique new site for you -- the freelance translator -- to store, manage and share translation memories (TMs) and glossaries...and potentially meet new clients on the basis of your prior work.

More info »
Anycount & Translation Office 3000
Translation Office 3000

Translation Office 3000 is an advanced accounting tool for freelance translators and small agencies. TO3000 easily and seamlessly integrates with the business life of professional freelance translators.

More info »



Forums
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search