tax
Let's see if I can make some use of this blog.
I am writing an invoice for a freelance translation job I've just handed in. It is the first time I do this, and I need to know what the rules are for invoicing, i.e. has anybody got the right to do it in this country? It was quite complicated in Italy, where you need to register your company or your services first.If, as a few (unfortunately not very knowledgeable on this subject) friends have told me, I can just do it and then register to pay tax on it, what is the invoice number going to be? "0000001"? And what do I need to do afterwards to notify the relevant authorities that I need to pay tax on private work? I am currently (Wed 30th Oct. 2002, 10:52am GMT) searching the web for information - if any of you can drop me a line (comments or email below) to clarify this and / or point to helpful web sites, it will be greatly appreciated.
Update: Marcus is an absolute star (but we all knew that already) - Thanks for the info, mate!
Wednesday 30 October 2002 at 3:52 am
Never thought to be saying this to an Italian, but our tax system sounds a lot more relaxed than yours does… As a "sole trader', you don't need to do anything other than declare the income (net of expenses) on your tax form at the end of the year (and some would question the need to do that). If you're going to make a substantial income from this, though, you should consider registering for VAT (check the HM Customs and Excise site for current minimum earnings; I'd guess 20k+ a year.) An accountant would advise you to open a separate bank account for your business, but I think that's overkill; just keep a fairly clear record of what you've been paid (and what you've spent on expenses - or what you could convincingly claim are expenses). Oh, and don't make your first invoice 001 unless you don't mind your client knowing this is your first job - my first invoice in my current business incarnation was 5001,
Thursday 31 October 2002 at 12:20 pm
Thank you Ian. I am proud to report that invoice # 039 is currently on its way. You are right, it is quite surprising that the Italian tax system is so complicated and strict - which probably explains the existence of such a high number of transactions and contracts that are carried out outside the system.
Thursday 31 October 2002 at 12:44 pm
Remind me on Sunday and we can talk about invoicing then, as I've had to do it for freelance work. That'll be exciting, won't it?!