Just a few translations - worth registering this tax year? Thread poster: clairetransl (X)
|
|---|
clairetransl (X)
United Kingdom
Local time: 23:58
French to English
+ ...
Hi everyone!
I'm in the process of setting myself up as a freelance translator and am wondering if it's worth registering as self-employed now when I'm only likely to get a few jobs between now and April. I have to fill out a self-assessment form anyway for other reasons. Would it be simple enough to register as self-employed online and just add the details of a few freelance jobs on the tax return?
I was advised on another thread to use an accountant for the first yea... See more Hi everyone!
I'm in the process of setting myself up as a freelance translator and am wondering if it's worth registering as self-employed now when I'm only likely to get a few jobs between now and April. I have to fill out a self-assessment form anyway for other reasons. Would it be simple enough to register as self-employed online and just add the details of a few freelance jobs on the tax return?
I was advised on another thread to use an accountant for the first year, which I want to do, but it doesn't seem worth it when I'll barely be getting started by the time April comes around. Would it be better to go ahead now and start taking on jobs (I know it can take months to build up any sort of client base) or wait until the next tax year and go at it with all guns blazing?
Any advice appreciated! ▲ Collapse
| | | |
Start now register as self employed and get going. if you are filling out a tax form anyway it doesn't make any difference to add your stuff in.
as for an accountant i would say that depends on how much you are making you have to be earning enough to make it worthwhile having an accountant so if you only have a few small jobs between now and the end of march it probably isn't worth paying an accountant
| | | | Russell Jones 
United Kingdom
Local time: 23:58
Italian to English
| clairetransl (X)
United Kingdom
Local time: 23:58
French to English
+ ...
TOPIC STARTER | Starting now | Jan 16, 2013 |
Brilliant, thanks! I can't wait to get started!
| | |
|
|
|
Neil Coffey
United Kingdom
Local time: 23:58
French to English
+ ...
| Strictly speaking... | Jan 16, 2013 |
Legally speaking, it isn't an optional decision, of course...!
If your affairs are simple as seems to be the case, then you could do without an accountant at least for this year.
The tax return itself is straightforward -- you don't have to give a detailed breakdown of jobs or anything like that (as I recall, you have to give a breakdown of a few things like expenses on vehicle hire and other things that are probably not relevant to most translators). On the other hand,... See more Legally speaking, it isn't an optional decision, of course...!
If your affairs are simple as seems to be the case, then you could do without an accountant at least for this year.
The tax return itself is straightforward -- you don't have to give a detailed breakdown of jobs or anything like that (as I recall, you have to give a breakdown of a few things like expenses on vehicle hire and other things that are probably not relevant to most translators). On the other hand, you should *keep* such records in case you were ever asked for them. ▲ Collapse
| | | | | You can also choose to have the tax year run with the calendar year | Jan 17, 2013 |
That is from 1 January to 31 December. I do this and am based in the UK.
| | | | clairetransl (X)
United Kingdom
Local time: 23:58
French to English
+ ...
TOPIC STARTER
Neil Coffey wrote:
Legally speaking, it isn't an optional decision, of course...!
If your affairs are simple as seems to be the case, then you could do without an accountant at least for this year.
The tax return itself is straightforward -- you don't have to give a detailed breakdown of jobs or anything like that (as I recall, you have to give a breakdown of a few things like expenses on vehicle hire and other things that are probably not relevant to most translators). On the other hand, you should *keep* such records in case you were ever asked for them.
It is a optional decision. If I don't translate anything, I don't need to register. I'm not talking about working and not paying tax, I'm talking about delaying the entire translation thing until April. I'm definitely not trying to do anything dodgy, don't worry!
I didn't know that you could choose to have the tax year run with the calendar year - that's interesting.
| | | | Neil Coffey
United Kingdom
Local time: 23:58
French to English
+ ...
| Can't you delay for up to 3 months? | Jan 18, 2013 |
clairemcn wrote:
It is a optional decision. If I don't translate anything, I don't need to register.
Sorry, I think I read your post hastily but understand now -- your issue was about whether to wait till the next *tax* year to register.
If you're not sure if you'll even take a single thing on in the next couple of months, then it certainly used to be the case that you had a 3 month "grace period" to register after first starting work. So assuming that's still the case, you could potentially put off the issue of registering until you have actually taken on an assignment.
Also for tax purposes what counts is the *invoice* date of items, not the actual payment date. So in *principle*, as far as I'm aware it is perfectly legal to issue an invoice with an invoice date in the next tax year, but then for the client to actually pay you in advance. This would obviously require you to know the client pretty well, and is something that I would check with an accountant before doing! I imagine that if you do this with an invoice date in April to collect a payment towards the end of March there is no big deal; if you do it to collect a payment in January, you might raise a few eyebrows...
[Edited at 2013-01-18 16:14 GMT]
| | |
|
|
|
clairetransl (X)
United Kingdom
Local time: 23:58
French to English
+ ...
TOPIC STARTER | 3 month grace period | Jan 18, 2013 |
Neil Coffey wrote: clairemcn wrote:
It is a optional decision. If I don't translate anything, I don't need to register.
Sorry, I think I read your post hastily but understand now -- your issue was about whether to wait till the next *tax* year to register. If you're not sure if you'll even take a single thing on in the next couple of months, then it certainly used to be the case that you had a 3 month "grace period" to register after first starting work. So assuming that's still the case, you could potentially put off the issue of registering until you have actually taken on an assignment. Also for tax purposes what counts is the *invoice* date of items, not the actual payment date. So in *principle*, as far as I'm aware it is perfectly legal to issue an invoice with an invoice date in the next tax year, but then for the client to actually pay you in advance. This would obviously require you to know the client pretty well, and is something that I would check with an accountant before doing! I imagine that if you do this with an invoice date in April to collect a payment towards the end of March there is no big deal; if you do it to collect a payment in January, you might raise a few eyebrows... [Edited at 2013-01-18 16:14 GMT]
Hi Neil,
Thanks for your advice. I thought the same about the grace period, but when I rang HMRC, the advisor said I needed to register immediately. He could quite well have been wrong, because I've read a lot of advice here to the contrary.
Assuming the 3 month grace period thing is correct, does it also apply when the 3 months takes you from one tax year to another? So if I started translating in February, I could just register in April and everything would count towards the next tax year?
| | | | Louisa Berry
United Kingdom
Local time: 23:58
Member (2009)
German to English
| 3 month period | Jan 18, 2013 |
If you started in February and then didn't register until April HMRC will ask you for the date on which you started being self employed, and you will be deemed registered from that date.
In theory you are supposed to register straight away but HMRC allow you three months in case you didn't know how to register, you forgot etc.
| | | | Neil Coffey
United Kingdom
Local time: 23:58
French to English
+ ...
| Grace period... | Jan 18, 2013 |
clairemcn wrote:
So if I started translating in February, I could just register in April and everything would count towards the next tax year?
I think Louisa is right-- if you *actually* do start your first assignment before April-- or at least, early enough that the corresponding invoice is before the start of the next tax year-- then you will be registered in this tax year.
My point was more that if you're not sure yet if you'll start your first assignment and don't want to register until you actually have an assignment but at the same time don't want to delay saying yes to a client while awaiting registration, that should still be OK-- you can do the work, issue an invoice and then sort out the paperwork 'after the event'.
If you absolutely know that you will be issuing an invoice before the end of this tax year, then I think you don't have any choice but to register (for) this tax year.
| | | | Jessie LN
United Kingdom
Local time: 23:58
Spanish to English
+ ...
| It doesn't hurt to register | Feb 4, 2013 |
I registered as self-employed in December and have yet to make any money from translation (which I'm doing part-time alongside a part-time job). So far it's been quite useful because I can provide translation agencies with my Unique Taxpayer Reference to prove that I'm properly registered for tax purposes (Spanish agencies request it occasionally).
In their most recent letter to me, HMRC state that there is this three-month 'grace' period and that they'll notify when I need to fill ... See more I registered as self-employed in December and have yet to make any money from translation (which I'm doing part-time alongside a part-time job). So far it's been quite useful because I can provide translation agencies with my Unique Taxpayer Reference to prove that I'm properly registered for tax purposes (Spanish agencies request it occasionally).
In their most recent letter to me, HMRC state that there is this three-month 'grace' period and that they'll notify when I need to fill out a tax return (or something to that effect - the letter's at home and I'm not).
Watch out though - you will still be liable to pay Class 2 NI even if you're not earning. You can apply for a Certificate of Small Earnings, however, if you expect to make less than £5,595 before the end of the 2012-13 tax year and this will exempt you from Class 2 NI payment. This may affect your entitlement to certain NI-based benefits though (job-seekers' allowance, for example) if you're not paying any National Insurance at all. ▲ Collapse
| | | | There is no moderator assigned specifically to this forum. To report site rules violations or get help, please contact site staff » Just a few translations - worth registering this tax year? | Wordfast Pro | Translation Memory Software for Any Platform
Exclusive discount for ProZ.com users!
Save over 13% when purchasing Wordfast Pro through ProZ.com. Wordfast is the world's #1 provider of platform-independent Translation Memory software. Consistently ranked the most user-friendly and highest value
Buy now! » |
| | Protemos translation business management system | Create your account in minutes, and start working! 3-month trial for agencies, and free for freelancers!
The system lets you keep client/vendor database, with contacts and rates, manage projects and assign jobs to vendors, issue invoices, track payments, store and manage project files, generate business reports on turnover profit per client/manager etc.
More info » |
|
| | | | X Sign in to your ProZ.com account... | | | | | |
Login to reply/comment 
