How do I avoid tax evasion?
Thread poster: Harriet Good (X)
Harriet Good (X)
Harriet Good (X)
Spain
Local time: 14:23
English to Spanish
+ ...
Aug 27, 2018

I am just setting up as a freelancer having completed an unpaid internship so I will be doing paid work for the first time. Would anyone be able to give me some advice on what I need to do tax-wise to make sure I'm complying with all necessary regulations? I will be mainly doing work for a Spanish agency (the one where I've been previously working) but will be living in Belgium. I am a UK citizen but living in Belgium as an ERASMUS student until next spring.

Any advice would be much
... See more
I am just setting up as a freelancer having completed an unpaid internship so I will be doing paid work for the first time. Would anyone be able to give me some advice on what I need to do tax-wise to make sure I'm complying with all necessary regulations? I will be mainly doing work for a Spanish agency (the one where I've been previously working) but will be living in Belgium. I am a UK citizen but living in Belgium as an ERASMUS student until next spring.

Any advice would be much appreciated!
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Dan Lucas
Dan Lucas  Identity Verified
United Kingdom
Local time: 13:23
Member (2014)
Japanese to English
A promising beginning Aug 27, 2018

Harriet Good wrote:
I will be mainly doing work for a Spanish agency (the one where I've been previously working) but will be living in Belgium. I am a UK citizen but living in Belgium as an ERASMUS student until next spring.

It is good to see that you are taking these issues seriously right from the start of your career. Being able to translate is only a part of the business of translation. I also like that you have used your real name, though your profile will obviously need work. Plenty of threads on this forum about that.

The first thing that strikes me is that, if you are living in Belgium, you may not be domiciled in the UK for tax purposes. So, first work out your status from this page:
https://www.gov.uk/tax-foreign-income/residence

If you are deemed to be resident in the UK, you will probably need to submit a self-assessment to HMRC at the end of the year, if you have made enough money. Take a look here:
https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

One minor point: I would advise you to obtain paper receipts for every business-related expense you incur.

One major point: you must keep marketing yourself to new clients to broaden your customer base, as being dependent on one client is not a tenable situation for the long term.

Regards,
Dan

[Edited at 2018-08-27 12:33 GMT]


Angie Garbarino
Noni Gilbert Riley
Valérie Ourset
Lucien Rousseau
 
Maria Teresa Borges de Almeida
Maria Teresa Borges de Almeida  Identity Verified
Portugal
Local time: 13:23
Member (2007)
English to Portuguese
+ ...
@Harriet Aug 27, 2018

Things to consider:
1. Does your Erasmus student status allow you to work?
2. Are you allowed to work in Belgium as an international student?


 
Nikki Scott-Despaigne
Nikki Scott-Despaigne  Identity Verified
Local time: 14:23
French to English
Legal set-up Aug 27, 2018

As Dan and Teresa have pointed out, you need to see what options are open to you from a legal point of view, taking into account your circumstances. You will need to get this sorted out before you start working, which you seem to realize, so I join the others in applauding you on that front. Your clients will need to process your invoices with various reference numbers (business registration, taxation), so whatever you do, get your legal setup sorted to start with and taxations options will flow... See more
As Dan and Teresa have pointed out, you need to see what options are open to you from a legal point of view, taking into account your circumstances. You will need to get this sorted out before you start working, which you seem to realize, so I join the others in applauding you on that front. Your clients will need to process your invoices with various reference numbers (business registration, taxation), so whatever you do, get your legal setup sorted to start with and taxations options will flow from that.

Dan has provided a couple of references that are official sources. Always make important decisions based on information from official sources. If you are not sure and need some explanations, I recommend sending an e-mail. That way, you will have a trace of what you asked and of the answer you receive. Do not make important decisions on the basis of a telephone call alone, even from an official source. The person you speak to, can misunderstand what you are asking and you can misunderstand the answer. Either party can fail to realize that other important and related matters need to be considered too. Making an appointment can often be the best way. I have been pleasantly surprised to find how helpful tax, pension and labour regulation offices are. Their advisory role is often overlooked and it can save expensive mistakes.

Once you are up and running, be wary of finding yourself with all your eggs in one basket. It is inevitable at times, but it is dangerous. If you work for one client exclusively, then you are like an employee, even if it is part-time. This is an unbalanced solution as your client is just that and can decide to stop sending you work and that's that. (It is actually illegal in France, for example, where the self-employed are known as "independent" workers). With a single client on your books, your independence can be compromised. If you are an employee, once you have worked for a while, you acquire various rights when a contract ends and that gives you protection. If the single client drops you from one day to the next, you may have to continue contributing to compulsory social funds (retirement, health, etc.) without having any money coming in to cover it. You really need to avoid that.

So scaremongering over, check out what options are available and then take the plunge if you feel that it is a viable option. You may be at the start of something really good for you and that you will really enjoy. You are on the right track as you seem to want this to be an informed decision. It should be.

[Edited at 2018-08-27 13:58 GMT]
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Angie Garbarino
Maria Teresa Borges de Almeida
 
Angie Garbarino
Angie Garbarino  Identity Verified
Local time: 14:23
Member (2003)
French to Italian
+ ...
Where is your official residence? Aug 27, 2018

Harriet Good wrote:
I will be mainly doing work for a Spanish agency (the one where I've been previously working), but will be living in Belgium. I am a UK citizen but living in Belgium as an ERASMUS student until next spring.

Any advice would be much appreciated!


From the indication quoted, I suspect your official/legal residence is in Spain, in this case you need to follow Spanish rules, because citizenship or where you temporarily live does not matter for tax reasons, official residence only does, I know because I am Italian citizen with Spain residence and I (mandatorily) follow Spanish tax rules.

I hope it helps and good luck for your career

[Edited at 2018-08-27 19:03 GMT]


 


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How do I avoid tax evasion?







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