Post by NaminI've been living in the UK for 2 years, and only recently life as a
freelance translator has finally started to show some promise. Now my
question is: As a freelance translator, is there an obligation to pay an
income tax?
pay tax - obligation - yes.
imo you need to register as self-employed. Technically speaking. Legally you
MUST. Whether you do, is up to you. What's your IP address btw? I should be
able to get a reward if I report you to a free and confidential helpline ;)
Can I expect my bank account to be checked by Inland Revenue?
you can expect it, I don't know how likely/unlikely it is though.
Post by NaminI need to get in touch with them as soon as possible?
if you want to do it legally, if you want to pay taxes (ouch), National
Insurance Contributions class2 (?2 per week) and possibly class 4 (8% of
your - net, I think - income if it's more than 4K+ (more or less)
YES
Post by NaminAnd what if I don't?
what CAN happen - you can be found out. (see above though)
Post by NaminIf I am liable income tax, on what basis is it calculated? I really have no
idea about all these issues, so any information will be appreciated.
see above, search internet for "Inland Revenue + freshly self-employed
helpline or a help-line to register"
Now, 1/2 OT
I don't know IF you HAVE TO have a national insurance Number. If you do and
you don't have one, quick info: you find a local Social Security office, you
call one of their lines, in our case it took over 30 messages left and over
two MONTHS for them to call back and arrange for an appointment to
investigate my girlfriend's case for NI Number. No, you can't go there
personally, not even 6 a.m. any more, not unless you already have an
appointment.
They want lots of documents and here's where the plot thickens: apart from
your ID, passport, proof of address, etc, etc, they demand (no flexibility
there) a written proof from Inland Revenue that you're self-employed. But
hey - Inland Revenue DON'T issue ANY proof, and on the occassion some of
them think they indeed issue a proof, they demand to be given your NI number
to issue that written proof. (I like that one in particular, although my
girlfriend's slighly hysterical about it)
Other people in Inland Revenue (Manual Billing Unit) claim that DWP (dep. of
work and pensions) wrongly demand that confirmation, as it is against their
own (i.e. DWP's) guidance / rules hidden in a mysterious SNAP document
(Secure National Insurance Number appointment procedures, apparently
available in every local Social Security Office, but unknown to DWP hotline
people).
Well, snap or not, DWP hotly debated the above statemetn claiming that
Inland Revenue don't know what they're talking about.
A /ei/ proof might be your self-employed National Contributions bill that
you receive in the post - quarterly. But as Inland Revenue have a huge
backlog of self-employed people to register, that takes months these days.
Apparently filling out a form (CWF1 or something).and posting it to them is
quicker.
Another way out is to locate (local Inland Revenue should hold it on record)
your unique tax reference No you are given when you attempt to register as
self-employed on the phone. Then you can call a tax office that holds your
records (might be in Swansea or Land's End, or Yorkshire :) and if you
explain yourself they might be able AND willing to issue a letter confirming
God knows what. This is the stage my girlfriend is at - still waiting for
this letter and appoitment with lovely social security looming right after
the new year.
Oh, yes, don't be surprised that during that pre-interview telephone call
(if you ever get that far) you might be asked intrusive questions like: when
did you last travel back to your country, how long for, what did you do
before you registered as self-employed, where did you get the money from to
live here, why don't you have an accountant, why don't you have (if you
don't) invoices or letters from your clients, where is your CIS card (yes, a
card issued to self-employed painters, house decorators, rope access people,
etc, never mind you've told the person you are a TRANSLATOR 6 times
already).
Funnily enough you're entitled to a National Insurance Card even if you
DON'T work. How's that versus their expectations I can't explain.
Oh, yes, you must also bring a proof that you can work in the country
legally. Either an EU passport, or one with a visa and letter from Home
Office. That requirment is quite sensible though. If you're not legally
allowed to work in the UK (say a CIS passport( it'll be tough though, so
watch out.
Still want to go legal? :P
btw, I'm NOT trying to put you off, registering for self-employment is
REALLY one call away, but the rest is off-putting, to get that
one more thing: NEVER believe that the person on the phone is telling the
true just because what they say sounds reasonable. That, in my growing
experience applies PARTICULARLY to governmental bodies such as Inland
Revenue and Social Security. Since I've called so many people with the same
problem I've heard so many wildly contradictory answers that by default I
assume they might be:
a) telling the truth, which needs to be verified by other independent
sources to be true or close to being true.
b) usually they don't know what they're talking about, but CAN'T say that,
so they make it up, based on whatever thing they heard that bears any
relation to my question. The general purpose is to get rid of you, as soon
as your problem is less than an FAQ level.
c) they dont' answer the phone.
d) nobody's accountable, despite taking down their names and even speaking
to supervisors and worth spending time demanding they become knowledgeable.
a loose thread: I think many people live and work in the UK illegally
(breaking immigration law) but pay taxes (don't break tax law)
marek