When starting up a new business, you have to make sure it’s all done legally. Well, it is a bit of paperwork: you have to contact several different organisations. It depends on what kind of legal structure you adopt (sole trader, limited company?). But there are some steps that every startup translator has to make in order to get it right.
What every translator has to do
Everyone starting a new business must register with HM Revenue & Customs (income and tax people!). It is mainly for paying your income tax and National Insurance Contributions. If you will be employing staff, you also have to register as an employer, but I suppose that most of us run as sole traders. You will also have to register for VAT once your whole income reaches somewhere above £60,000 per year (which I heartily wish you will do).
Registration as self-employed
You can register as self-employed very easily. Simply call the Newly Self-Employed Helpline (0845 9154 515) or complete and return form CWFI.
Registering a company
If you plan to start a limited company or a limited liability partnership, you have to register at Companies House before you start trading. You must complete and return form INo1, as well as Memorandum of Association and Articles of Association. This process is called incorporation, costs mere £20 and takes about 5 days.
Insurance?
It is important to get insured if you have employees. Translators should also consider professional indemnity insurance, which protects them from covering the full cost of defending in case of negligence or damages claim.
Working from home
Most of translators work from home and there are no regulations preventing them from registering companies or sole trading in rented premises. However, you will need to inform your landlord or mortgage company in order to check if they allow you to do this. My landlord did and helped me with some accounting issues!
Translators and personal data
Most translators do process personal data, such as telephone numbers, addresses and details of their clients. They need to register as a data controller with the Information Commissioner’s Office. It costs as little as £20 per year.
Startup: dos and don’ts
- Do make HMRC your first contact when starting a new business.
- Do allow enough time when planning a new business to contact and receive replies from all relevant organisations
- Do make use of business advisers
- Don’t delay when registering your new business, as you may be liable to be fined.
- Don’t overlook essential services such as electricity, gas, telephone and broadband - contact providers!
- Don’t forget that local authorities can provide access to useful sources of business support
HM Revenue & Customs (HMRC)
Newly Self-Employed Helpline:
0845 9154 515
Website: www.hmrc.gov.uk/startingup
Companies House
Telephone: 030 2123 4500
Website: www.companieshouse.gov.uk
Information Commissioner’s Office
Notification helpline: 0303 123 1113
Website: www.ico.gov.uk
Marta Stelmaszak
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