French translator starting as a freelance in UK Thread poster: Anne51
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Anne51
France
Local time: 05:40
English to French
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Hi there,
I am starting as a freelance - having worked for the same company for years before - and I would be thankful to anyone able to answer my questions. I'm living in the UK now but I'm French and used to live there, so I would like to start my business properly, according to the UK rules...
First question: I know that VAT has not to be charged before a threshold is reached (73000 pounds if I understood correctly), so, what should I mention on my invoices: "VAT no... See more Hi there,
I am starting as a freelance - having worked for the same company for years before - and I would be thankful to anyone able to answer my questions. I'm living in the UK now but I'm French and used to live there, so I would like to start my business properly, according to the UK rules...
First question: I know that VAT has not to be charged before a threshold is reached (73000 pounds if I understood correctly), so, what should I mention on my invoices: "VAT not applicable" or no mention at all? More generally, what are the details that should absolutely be mentionned on invoices?
Second question: my current clients will pay in euros (on a French bank account) so my invoices will mention amounts in euros; is it a problem - I mean, do I have to convert into pounds or will I only have to convert the amounts when I pay taxes?
Third question: can the HMRC (or any other official UK agency) deliver some kind of document/number prooving my status as a freelance (one client requires it)?
Thanks a lot in advance,
Anne. ▲ Collapse
| | | | | talk to HMRC | Jul 23, 2011 |
Hello Anne,
My invoices didn't use to say anything regarding my non-VAT registered status as it is not uncommon here for small businesses/sole traders to not be registered for VAT.
I changed it last year however as it confused my German clients due to the VAT threshold being much lower over there. My invoices state my name, address etc., invoice number, date, job ref., word rate & number, total, payment terms ('within 28 days please' - I live in hope! ... See more Hello Anne,
My invoices didn't use to say anything regarding my non-VAT registered status as it is not uncommon here for small businesses/sole traders to not be registered for VAT.
I changed it last year however as it confused my German clients due to the VAT threshold being much lower over there. My invoices state my name, address etc., invoice number, date, job ref., word rate & number, total, payment terms ('within 28 days please' - I live in hope! ) and bank account details.
I also have a Euro account for Eurozone clients, and I just convert the Euros to GBP for my tax return.
Don't know where you can obtain proof of freelancer status - hopefully someone more knowledgeable will come along. You could always ring HMRC and ask, they're usually very friendly and helpful. I would also ask them re. the Euro/GBP query.
All the best,
Eva ▲ Collapse
| | | | | My experience | Jul 23, 2011 |
As far as I know, HMRC does not require you to say anything about VAT on your invoices if you're below the threshold. A few of my clients in other countries require me to make a statement to the effect that I am not VAT-registered, but otherwise, I don't include it in my invoices.
In the past, when I received payments in currencies other than pounds (I used to have a dollar-denominated account), my accountant converted these amounts into pounds when I completed my tax return, so I a... See more As far as I know, HMRC does not require you to say anything about VAT on your invoices if you're below the threshold. A few of my clients in other countries require me to make a statement to the effect that I am not VAT-registered, but otherwise, I don't include it in my invoices.
In the past, when I received payments in currencies other than pounds (I used to have a dollar-denominated account), my accountant converted these amounts into pounds when I completed my tax return, so I assume it's not necessary to do so any earlier than that.
As for proof of your self-employed status, why does your client need it - is it so that you can prove you are resident in the UK for tax purposes? If so, you should be able to obtain a document to that effect from HMRC. I had to do that twice for a client in Romania, and still have the certificates. The first (issued in Feb 2008) is headed "certificate of fiscal residence" and simply says that I am resident in the UK for tax purposes and pay UK taxes. The second (Sep 2010) merely says that I am resident in the UK under UK domestic law, and mentions my trading name. Neither specifically mentions "self-employed" as my status, so if confirmation of fiscal residence isn't enough, I'd suggest you ask HMRC if there's anything else they can give you. You might be in for a long wait, I'm afraid - on the second occasion, it took them three months to get back to me! ▲ Collapse
| | | | Anne51
France
Local time: 05:40
English to French
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TOPIC STARTER | Thanks a lot! | Jul 23, 2011 |
Thank you very much Eva and Peter! I will definitely call HMRC to clarify the status question and will keep you posted...
Have a nice week-end!
Anne
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| Perhaps not the most helping answer | Jul 23, 2011 |
Perhaps not the most helping answer as I have never worked with or am aware of the British financial system, however I have already come across the term "VAT absent".
Some months ago, a Swiss company asked me what was my tax status (and like you, have requested my taxation information to confirm I am "self-employed" or "freelancer", or even, as it's called in my country: "independent worker") or if I was VAT absent, which I am until February 2012.
In your invoices, my personal... See more Perhaps not the most helping answer as I have never worked with or am aware of the British financial system, however I have already come across the term "VAT absent".
Some months ago, a Swiss company asked me what was my tax status (and like you, have requested my taxation information to confirm I am "self-employed" or "freelancer", or even, as it's called in my country: "independent worker") or if I was VAT absent, which I am until February 2012.
In your invoices, my personal suggestion would be to put 0% on VAT, and if you prefer, put an asterisk after it to mention later that that VAT is related to the fact that you are VAT absent.
Related to the conversion, despite having a relatively short career so far, I have never heard of converting earlier than the moment of tax return, as Peter mentioned, for taxing purposes.
Other than that, I wish you the best of lucks in your new country and hope you have fun in the UK. ▲ Collapse
| | | | Anne51
France
Local time: 05:40
English to French
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TOPIC STARTER | I will follow your VAT advice Ricardo | Jul 24, 2011 |
Thanks Ricardo: I think I will follow your suggestion regarding the VAT to ensure that everything is clearly stated - and yes, I enjoy being in the UK! Best wishes to you too.
Anne
| | | | Williamson 
United Kingdom
Local time: 04:40
Flemish to English
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| Some references | Jul 25, 2011 |
All you need to know about VAT in the UK:
http://www.hmrc.gov.uk/vat/index.htm
Have a look at :http://online.businesslink.gov.uk/bdotg/action/logicToolStart?itemId=1077722988&r.l1=1073858805&r.l2=1073859188&r.l3=1073863071&r.s=sc&type=BLTTOOL
I always put: free of VAT, reference: HMRC Reference:Notice 700/1 (Apr 2010)
| | | | Anne51
France
Local time: 05:40
English to French
+ ...
TOPIC STARTER | Thanks for your references Williamson | Jul 25, 2011 |
I will read them right now.
Have a nice day,
Anne.
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