VAT threshold raised in the UK
Thread poster: Marijke Singer

Marijke Singer  Identity Verified
United Kingdom
Local time: 23:44
Dutch to English
+ ...
Apr 19, 2005

Thought I'd post this in case it was of interest to anybody.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PROD1_024154&propertyType=document

"From 1 April 2005, to help keep around 5,000 of the smallest businesses out of the VAT system, the VAT registration threshold will increase from £58,000 to £60,000, broadly in line with inflation. The deregistration threshold will increase to £58,000..."


Direct link Reply with quote
 

Amy Williams  Identity Verified
United Kingdom
Local time: 23:44
Italian to English
+ ...
VAT threshold Apr 19, 2005

Thanks for the info, Marijke!

Direct link Reply with quote
 

Christine Andersen  Identity Verified
Denmark
Local time: 00:44
Member (2003)
Danish to English
+ ...
I don't understand!! Apr 19, 2005

I really don't understand!!

Here in Denmark it's the other way round. It's actually an advantage to be VAT registered as a small business. If you're earning anything like a living as opposed to pocket money as a single trader or freelancer, you come over the Danish threshold, but then you are entitled to all the advantages of VAT relief on expenses (it's 25% on everything, so that is an advantage).

Besides, all sorts of administrative rules and regulations are clear and easy to follow. People register voluntarily before they are obliged to, even if they are not really planning to expand a profitable hobby into a serious business, then everyone knows where they stand.

The one big criterion is that you have to have VAT numbers for your clients ... and I have serious problems with non-VAT-registered clients in the UK as it is. If they're not extremely good friends or offering a really big, well paid job, it's barely worth my while to work for anyone not VAT-registered. I'm supposed to charge them 25% VAT, and then they can't afford my rates or I can't live on the rates they can afford.

The authorities here love it too - they can see which side of the law we're on, so they leave us alone if our accounts are in order.

Luckily the bureaus I work for in Scandinavia and Belgium are VAT registered... and some UK-based ones are too.
I hope it's an advantage for you somewhere, but sorry folks, I'm not congratulating you on that one!


Direct link Reply with quote
 

Marijke Singer  Identity Verified
United Kingdom
Local time: 23:44
Dutch to English
+ ...
TOPIC STARTER
You just described another advantage for UK translators not to be VAT registered Apr 19, 2005

Christine Andersen wrote:

I really don't understand!!

Here in Denmark it's the other way round. It's actually an advantage to be VAT registered as a small business. If you're earning anything like a living as opposed to pocket money as a single trader or freelancer, you come over the Danish threshold, but then you are entitled to all the advantages of VAT relief on expenses (it's 25% on everything, so that is an advantage).

Besides, all sorts of administrative rules and regulations are clear and easy to follow. People register voluntarily before they are obliged to, even if they are not really planning to expand a profitable hobby into a serious business, then everyone knows where they stand.

The one big criterion is that you have to have VAT numbers for your clients ... and I have serious problems with non-VAT-registered clients in the UK as it is. If they're not extremely good friends or offering a really big, well paid job, it's barely worth my while to work for anyone not VAT-registered. I'm supposed to charge them 25% VAT, and then they can't afford my rates or I can't live on the rates they can afford.

The authorities here love it too - they can see which side of the law we're on, so they leave us alone if our accounts are in order.

Luckily the bureaus I work for in Scandinavia and Belgium are VAT registered... and some UK-based ones are too.
I hope it's an advantage for you somewhere, but sorry folks, I'm not congratulating you on that one!



Hi Christine,

First, let me say that I am not sure if it is wise to be VAT registered or not. However, your description means that for non-registered agencies, it is more attractive to work with non-registered UK freelancers since they would always be 'cheaper'. The reason my accountant says it is better not to register for VAT is that I only need to keep one set of books (for the Inland Revenue) and therefore I only need to do it once a year. The authorities leave us alone too if our accounts are in order (especially if you use an accountant). Any VAT we may pay is also deductible but from our income so once you earn a certain sum all VAT that you may have paid (on paper, PCs, etc.) will be deducted from your income before you pay tax.

I usually include my Inland Revenue number on my invoices. Anybody can ring up the Inland Revenue and check whether I am a true self-employed person (and presumably whether I have paid all my taxes). I haven't done it myself but I suppose it would work this way.

Take care,
Marijke


Direct link Reply with quote
 

Christine Andersen  Identity Verified
Denmark
Local time: 00:44
Member (2003)
Danish to English
+ ...
You can bet I deduct everything too Apr 19, 2005

I only have one set of books... My husband is a qualified economist and I'm hopeless at figures, but even I can cope with the Danish system.

I can easily operate the 'type in yourself' procedure for VAT returns as long as the client has a VAT number. It takes 15-20 minutres once in three months. But without a VAT number, there is no way I can deduct the VAT in the Danish system - the automatic system doesn't make the effort to ring to the Inland Revenue when everyone else in the EU is VAT registered. The Inland Revenue number doesn't fit the VAT format, and the system refuses to accept it. So I have go through quite a procedure on paper, or pay the 25% VAT myself.

I have less trouble with a Norwegian client who is not in the EU at all!

That's how it works over here anyway. And trouble with the Danish tax authorities can mean literally years of hassle, so if an easy procedure like VAT registration keeps them quiet, I'm all for it.

Never mind, I have plenty of clients outside the UK, but it is a little irritating when I always translate into UK English.

Happy translating - over and out from here.

[Edited at 2005-04-19 19:15]


Direct link Reply with quote
 

Amy Williams  Identity Verified
United Kingdom
Local time: 23:44
Italian to English
+ ...
Don't blame us, blame the government! :-) Apr 19, 2005

Christine Andersen wrote:

I really don't understand!!

Here in Denmark it's the other way round. It's actually an advantage to be VAT registered as a small business. If you're earning anything like a living as opposed to pocket money as a single trader or freelancer, you come over the Danish threshold, but then you are entitled to all the advantages of VAT relief on expenses (it's 25% on everything, so that is an advantage).

Besides, all sorts of administrative rules and regulations are clear and easy to follow. People register voluntarily before they are obliged to, even if they are not really planning to expand a profitable hobby into a serious business, then everyone knows where they stand.

The one big criterion is that you have to have VAT numbers for your clients ... and I have serious problems with non-VAT-registered clients in the UK as it is. If they're not extremely good friends or offering a really big, well paid job, it's barely worth my while to work for anyone not VAT-registered. I'm supposed to charge them 25% VAT, and then they can't afford my rates or I can't live on the rates they can afford.

The authorities here love it too - they can see which side of the law we're on, so they leave us alone if our accounts are in order.

Luckily the bureaus I work for in Scandinavia and Belgium are VAT registered... and some UK-based ones are too.
I hope it's an advantage for you somewhere, but sorry folks, I'm not congratulating you on that one!



You have a good point, Christine - in fact, I've been debating whether to register voluntarily for a while and am just about to take the plunge...

I was once accused of operating illegally by a Dutch client who didn't believe that the UK threshold was so high and thought that because I didn't have a VAT number I must be some sort of tax dodger.

Like Marijke, I always add my NI number to invoices. I have never had problems with this.

I'm sorry that you feel that way.


Direct link Reply with quote
 
xxxUSER00230
United Kingdom
Local time: 23:44
German to English
is voluntary VAT registration worth it in the UK? Aug 2, 2005

any more views on whether voluntary VAT registration in the UK is worth it? I note one person said she was about to take the plunge - how have you found it? Someone else said they thought it was probably too much paperwork.

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 »

VAT threshold raised in the UK

Advanced search







memoQ translator pro
Kilgray's memoQ is the world's fastest developing integrated localization & translation environment rendering you more productive and efficient.

With our advanced file filters, unlimited language and advanced file support, memoQ translator pro has been designed for translators and reviewers who work on their own, with other translators or in team-based translation projects.

More info »
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 »



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