UK Tax - translations paid in euros Thread poster: Bertille Bacart
|
|---|
Good morning everyone,
I am a French freelance translator living in the UK. I just started a few weeks ago, and I have an important question and maybe you can help me with.
For the moment, my customers are French and based in France. They told me they don’t want to pay me by direct transfer to my UK account as it costs at least 10€ (which is a lot for a 50€ translation for example). So one of them sent me a euro cheque and I will put it on my French account.
... See more Good morning everyone,
I am a French freelance translator living in the UK. I just started a few weeks ago, and I have an important question and maybe you can help me with.
For the moment, my customers are French and based in France. They told me they don’t want to pay me by direct transfer to my UK account as it costs at least 10€ (which is a lot for a 50€ translation for example). So one of them sent me a euro cheque and I will put it on my French account.
But I am not sure this is legal. I am registered in the UK, I will pay taxes in the UK, while the money will be on my French account.
Can someone help me with this? Or at least tell me if it’s legal?
Thank you for your help,
Bertille
[Edited at 2012-07-06 09:56 GMT] ▲ Collapse
| | | | Peter Linton (X) 
Local time: 14:48
Swedish to English
+ ...
The official advice from HMRC is to persuade your customer to pay you in sterling and transfer that amounts to your UK bank account.
An alternative, and as far as I know legal procedure, is to open a Euro account at a British bank. That is what I have. Then your French customer can transfer money in euros, at low or zero cost thanks to EU law on transferring euros. If you pay tax in the UK, you must convert the euro amounts into sterling, and you can use an official HMRC exchange r... See more The official advice from HMRC is to persuade your customer to pay you in sterling and transfer that amounts to your UK bank account.
An alternative, and as far as I know legal procedure, is to open a Euro account at a British bank. That is what I have. Then your French customer can transfer money in euros, at low or zero cost thanks to EU law on transferring euros. If you pay tax in the UK, you must convert the euro amounts into sterling, and you can use an official HMRC exchange rate that they publish every month. That way your Euro income is declared and taxed as normal.
From time to time I ask the bank to transfer funds from my Euro account to my sterling account. They charge, but the rate is much more favourable than tourist rates.
If I am going on holiday in Europe, I can withdraw euros without any foreign exchange loss, and I can then pay for hotels and meals etc in euros – much safer than credit cards these days.
One disadvantage with my bank is that there is no online access. The bank sends me paper statements every time someone pays me, and I get a monthly statement as well. ▲ Collapse
| | | | | I have my EU-based customers pay into my Dutch current account | Jul 6, 2012 |
Peter Linton wrote:
One disadvantage with my bank is that there is no online access. The bank sends me paper statements every time someone pays me, and I get a monthly statement as well.
I've been living and working in the UK since 1998 as a freelance translator. 90% of the work I do is for EU-based customers and only 10% for UK customers. My customers trasfer the money to my Dutch bank account and I transfer the money to my UK sterling account (this is free of charge and takes a day; I rarely or rather never pay fees in relation to EU transactions). The tax authorities have never queried it. I keep records in euros and in sterling and my accountant uses this information to fill in my tax return each year.
What Peter says is correct. The bank will send you a statement every time money arrives in your UK account. Apparently they have to by law (or so I was told by my bank).
[Edited at 2012-07-06 19:42 GMT]
| | | | | and mine pay into my German account | Jul 7, 2012 |
It's free to transfer from there to the UK one.
At the end of the year my accountant does the conversion from EUR to GBP.
Gillian
| | |
|
|
|
Bertille Bacart
United Kingdom
Local time: 14:48
English to French
+ ...
TOPIC STARTER | paid in euros | Jul 7, 2012 |
Thank you for your help.
I checked again and a money transfer from a French account to a UK one is at least 4 euros (not as great as Dutch banks...).
So if I understand well (sorry for your time), is that either I have to create a UK account in euros or to be paid on my French account and then I transfer the money to my UK account?
But if I keep the money on my French account, without transferring it to the UK one, is it still legal?
Thank you ... See more Thank you for your help.
I checked again and a money transfer from a French account to a UK one is at least 4 euros (not as great as Dutch banks...).
So if I understand well (sorry for your time), is that either I have to create a UK account in euros or to be paid on my French account and then I transfer the money to my UK account?
But if I keep the money on my French account, without transferring it to the UK one, is it still legal?
Thank you again ▲ Collapse
| | | | Peter Linton (X)
Local time: 14:48
Swedish to English
+ ...
| Yes, it is legal | Jul 7, 2012 |
Bertille Bacart wrote:
. . . either I have to create a UK account in euros or to be paid on my French account and then I transfer the money to my UK account?
Yes. My invoices specify euros to my UK euro account.
But if I keep the money on my French account, without transferring it to the UK one, is it still legal?
Yes, as long as you tell HMRC that you have a foreign bank account.
| | | | Oliver Walter
United Kingdom
Local time: 14:48
German to English
+ ...
Peter Linton wrote: But if I keep the money on my French account, without transferring it to the UK one, is it still legal? Yes, as long as you tell HMRC that you have a foreign bank account.
Oliver
| | | | | You can keep the money anywhere you like | Jul 8, 2012 |
Bertille Bacart wrote:
But if I keep the money on my French account, without transferring it to the UK one, is it still legal?
Thank you again
as long as you tell the tax authorities about what you have earned (and can prove it should this be necessary).
| | |
|
|
|
Russell Jones
United Kingdom
Local time: 14:48
Italian to English
| Bertille Bacart
United Kingdom
Local time: 14:48
English to French
+ ...
TOPIC STARTER
Thank you all of you, this was very helpful.
| | | | Bertille Bacart
United Kingdom
Local time: 14:48
English to French
+ ...
TOPIC STARTER
I just have a quick question that I forgot before.
Do you need a VAT number when you are a freelance translator?
Thank you again
| | | | Russell Jones
United Kingdom
Local time: 14:48
Italian to English
This website: http://www.hmrc.gov.uk/vat/start/introduction.htm will provide a lot of answers on everything related to self-employment, including income tax, National Insurance and registering as Self-Employed.
On VAT, it says: "When you must register for VAT
If you're a business and the goods or services you provide count as what's known as 'taxable supplies' ... See more This website: http://www.hmrc.gov.uk/vat/start/introduction.htm will provide a lot of answers on everything related to self-employment, including income tax, National Insurance and registering as Self-Employed.
On VAT, it says: "When you must register for VAT
If you're a business and the goods or services you provide count as what's known as 'taxable supplies' (see 'What is VAT charged on' below) you'll have to register for VAT if either:
•your turnover for the previous 12 months has gone over a specific limit - called the 'VAT threshold' (currently £77,000)
•you think your turnover will soon go over this limit
You can choose to register for VAT if you want, even if you don't have to." ▲ Collapse
| | |
|
|
|
Ben Engel
United Kingdom
Local time: 14:48
Spanish to English
+ ...
| How much VAT? | Oct 21, 2012 |
Hi folks,
Can anyone tell me what rate VAT is supposed to be charged at on translations? I've been working in-house for a long time, and I'm only just starting to get back into the world of freelancing. If my clients in Spain want a VAT (IVA) receipt to show the Fiscales, I need to know how much to collect from them. Will have a look at that link you posted above, Russell (thank you), but as it's general, it probably won't tell me how much to charge on translation services in partic... See more Hi folks,
Can anyone tell me what rate VAT is supposed to be charged at on translations? I've been working in-house for a long time, and I'm only just starting to get back into the world of freelancing. If my clients in Spain want a VAT (IVA) receipt to show the Fiscales, I need to know how much to collect from them. Will have a look at that link you posted above, Russell (thank you), but as it's general, it probably won't tell me how much to charge on translation services in particular.
Any help greatly appreciated.
Ben
www.baengeltranslations.com ▲ Collapse
| | | | Russell Jones
United Kingdom
Local time: 14:48
Italian to English
Ben; you really need to study the relevant sections of the website I suggested, particularly http://www.hmrc.gov.uk/vat/managing/international/exports/index.htm - or else speak to an accountant.
I don't pretend to be an expert on the subject but whether and how you charge VAT is dependent on whether your customer is a business or not, is registered for VAT ... See more Ben; you really need to study the relevant sections of the website I suggested, particularly http://www.hmrc.gov.uk/vat/managing/international/exports/index.htm - or else speak to an accountant.
I don't pretend to be an expert on the subject but whether and how you charge VAT is dependent on whether your customer is a business or not, is registered for VAT or not and - more importantly - whether you are registered for VAT or not.
In the unlikely event you do need to charge UK VAT, then it will be at the standard rate, currently 20%.
From what I have read on this site, there appears to be a particular problem with Spain. Because the UK has such a high VAT threshold, the majority of freelance translators are not registered for VAT, but it seems to be difficult for Spanish companies to meet their local regulations without at least quoting their suppliers' VAT number.
I don't work for Spanish companies, so perhaps someone who does will confirm or correct me.
[Edited at 2012-10-22 09:44 GMT]
[Edited at 2012-10-22 12:14 GMT] ▲ Collapse
| | | | XXXphxxx (X)
United Kingdom
Local time: 14:48
Portuguese to English
+ ...
There have been a few trillion threads on this. Yes, many Spanish agencies do demand a VAT No. (arguably they are right to do so). However, we are not obliged to be VAT registered below a certain threshold. I have found that supplying Spanish clients with my UTR and in some cases even some proof (some people get letters from HMRC) that I am registered for tax purposes in the UK is enough to keep everyone happy.
| | | | There is no moderator assigned specifically to this forum. To report site rules violations or get help, please contact site staff » UK Tax - translations paid in euros | Trados Business Manager Lite | Create customer quotes and invoices from within Trados Studio
Trados Business Manager Lite helps to simplify and speed up some of the daily tasks, such as invoicing and reporting, associated with running your freelance translation business.
More info » |
| | Trados Studio 2022 Freelance | The leading translation software used by over 270,000 translators.
Designed with your feedback in mind, Trados Studio 2022 delivers an unrivalled, powerful desktop
and cloud solution, empowering you to work in the most efficient and cost-effective way.
More info » |
|
| | | | X Sign in to your ProZ.com account... | | | | | |
Login to reply/comment 
