https://www.proz.com/forum/money_matters/335614-vat_for_uk_based_translators_flat_rate_annual_scheme.html

VAT for UK based translators- flat rate annual scheme
Thread poster: Ata Arif

Ata Arif  Identity Verified
United Kingdom
Local time: 11:46
Member (2009)
Kurdish to English
+ ...
Jun 21, 2019

Dear Colleagues
I wanted to ask those who are VAT registered in the UK and use the flat rate annual scheme a few questions:
1- what rate do you apply as a flat rate for the UK VAT as a translator/interpreter?
2- as for Making Tax Digital (MTD) - UK- even if you use an agent do you still need to buy a software? To be more specific, does even the agent need to have an account (on a software) for each client and does he/she charge them individually?
3- if so, would it be ch
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Dear Colleagues
I wanted to ask those who are VAT registered in the UK and use the flat rate annual scheme a few questions:
1- what rate do you apply as a flat rate for the UK VAT as a translator/interpreter?
2- as for Making Tax Digital (MTD) - UK- even if you use an agent do you still need to buy a software? To be more specific, does even the agent need to have an account (on a software) for each client and does he/she charge them individually?
3- if so, would it be cheaper to pay the agent for an account on his shared software (multi - client) than buying one for myself?
knowing that I currently use spreadsheets for my bookkeeping
if you prefer so, you may contact me directly through my proz.com profile
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Samuel Murray  Identity Verified
Netherlands
Local time: 12:46
Member (2006)
English to Afrikaans
+ ...
SITE LOCALIZER
@Ata Jun 21, 2019

Ata Arif wrote:
1- what rate do you apply as a flat rate for the UK VAT as a translator/interpreter?


I'm no expert (and not a UK translator), but isn't translation a "limited cost business"?
https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay
https://www.tax.service.gov.uk/check-your-vat-flat-rate/cost-of-goods
If so, then AFAICT, the flat rate would be 16.5% (which is better than the usual 20%).


 

Joe France  Identity Verified
United Kingdom
Local time: 11:46
Member (2016)
German to English
+ ...
In response to Point 2 Jun 21, 2019

I can't answer in any detail about different VAT schemes - you might well be better taking advice from an accountant about that. That said, the links posted by Samuel are very helpful in that regard. All I'm confident saying is that I'm voluntarily VAT-registered and apply 20% VAT to non-registered or UK-based clients... which has happened only a handful of times, anyway, and posed no issue.

In terms of point 2, MTD-compliant software is currently only mandatory for companies or tra
... See more
I can't answer in any detail about different VAT schemes - you might well be better taking advice from an accountant about that. That said, the links posted by Samuel are very helpful in that regard. All I'm confident saying is that I'm voluntarily VAT-registered and apply 20% VAT to non-registered or UK-based clients... which has happened only a handful of times, anyway, and posed no issue.

In terms of point 2, MTD-compliant software is currently only mandatory for companies or traders above the mandatory VAT registration threshold (~£80k p.a., I believe). As I'm (well) below that threshold, I still use spreadsheets etc. for my bookkeeping. However, there's a good chance that MTD software will be made mandatory for all businesses in future – though the rules are changing so quickly that it's really anyone's guess.
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Ata Arif  Identity Verified
United Kingdom
Local time: 11:46
Member (2009)
Kurdish to English
+ ...
TOPIC STARTER
UK law is much more complicated Jun 21, 2019

Samuel Murray wrote:


I'm no expert (and not a UK translator), but isn't translation a "limited cost business"?
https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay
https://www.tax.service.gov.uk/check-your-vat-flat-rate/cost-of-goods
If so, then AFAICT, the flat rate would be 16.5% (which is better than the usual 20%).


Dear Samuel,
Thank you very much for taking time and reply to my post, I actually read through those links several times in the past and discussed this with 2 accountants but still not sure as: UK law is very complicated in many fields let alone tax and VAT. there is no a clear cut answer that fits all, that is why I posted this here to hear about fellow linguists and to hear about their experience in this regard.
what is considered as 'limited cost' is also subject to different interpretations.


 


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