27 Apr
When we first talked about Brexit and the Language industry back in November, we were left with many unanswered questions. In December, the UK-EU trade deal was established and in January the Brexit transitional period came to an end and the UK fully departed from the European Union.
Now we have a much clearer idea of what has changed for the language industry post-Brexit. We had a bit of a look at this in our post An Early Look at the Language Industry in 2021 and answered some of our earlier questions, like whether GDPR would still apply. Today, Translate UK wants to take a closer look at the questions we asked back in November and provide some simple answers to all your FAQs.
Much of the information below has been sourced from the Association of Translation Companies’ Post-Brexit Guide. The ATC is an industry authority who provide invaluable lobbying, research, and training. Please see their website to learn more or read their complete Post-Brexit Guide in full.
Immigration
Can freelance translators and interpreters immigrate to the UK?
No. In the post-Brexit immigration system there is no route into the UK for self-employed freelance linguists.
Can Language companies sponsor EU employees to work in the UK?
Yes. To do this you need to apply for a Home Office Skilled Worker Sponsorship Licence. The Skilled Worker Route is a points-based system which has replaced the ‘Tier 2’ immigration system.
Will companies still be able to use the Erasmus scheme?
No. As mentioned in November, some language companies use the Erasmus student exchange programme to find native speakers to work on a short-term basis. It was not clear back in November whether the UK would remain a part of this scheme post-Brexit. However, we can now confirm that the UK will not be taking part any longer.
For those who are already taking part in the Erasmus scheme, this will be allowed to continue until your program is completed. After that UK companies will no longer be able to rely on this scheme to provide workers. The good news is UK is replacing this scheme with the Turing Scheme. The Turing scheme will begin in September 2021 and will provide study and work abroad opportunities for students worldwide.
Are there any other ways to recruit EU native speakers?
A post-graduate route will be launched this summer which will provide international students the chance to stay and work in the UK. The length they can stay will depend on their level of education. After this they may be allowed to switch to different immigration route.
There is also a Youth Mobility Scheme which enables young people to work and travel in the UK. Currently the UK does not have a YMS arrangement with any EU based countries, but this could change in the future.
Providing Language Services in the EU
Do we need to have an enterprise in the EU to providing services in the EU?
No. You do not need to have an enterprise or residence in an EU country to provide services in that country. The rules for this are now the same as for countries outside the EU. Please see the government guidelines for further information.
How has Brexit affected VAT for B2B sales?
VAT has remained largely the same for business-to-business sales, this is important to know as most translation and interpreting services are supplied to businesses. If you are a UK based business selling to an EU based business then as the supplier, you are out of the scope of UK VAT, but there is a reverse charge VAT for the buyer.
Remember VAT is registered for and paid for in the place of supply, which in B2B services is usually the location of the customer.
If you are not a VAT registered business, then there are no VAT effects for you the supplier and no VAT charged from the EU VAT-registered business.
See the ATC Post Brexit Guide to learn about the small print.
How has Brexit affected VAT for B2C sales?
Since Brexit, the rules for businesses selling to consumers in the EU have changed. Translation and interpreting services now fall under professional services which have special rules. These rules state that VAT is charged in the consumers country. This means that your UK based business will need to register for and pay VAT in the EU country where the consumer is based.
If you are selling to an EU based company that is not VAT registered, then the same rules apply.
Travel
Do I need a visa for business travel?
Maybe. Some forms of business travel will not require a visa, for example travelling for conferences or meetings. In these cases, business travel is allowed for up to 90 days and within a 180-day period. However, other types of business travel are not permitted. This includes providing services as a self-employed person in another country. As mentioned in our previous post translation and interpreting is permitted as an activity for short-term business visits. But please see the governments country specific guidelines as rules will vary by country.
Other Sectors
The language industry mainly provides services to other businesses, which means that the impact Brexit has on other industries is also important to us. Engineering, manufacturing and pharmaceuticals are some of the largest businesses in the UK. Many language companies including Translate UK, providing translations for manuals, safety instructions, packaging and more.
How is Brexit affecting the industries of client companies?
According to The Engineer, a UK jobsite for engineering, opinions are strongly divided over whether the Brexit trade deal is good or bad for the UK manufacturing. Similarly Pharma Letter, a pharmaceutical news service, says that the pharmaceutical industry is seeing many challenges and risks ahead, but potentially some opportunities as well. So unfortunately, it is still too soon to tell.
Learn More
To read our previous posts on Brexit, Covid-19 and the language industry follow the links below.
Or for an in-depth guide of the impact of Brexit on the language industry see the ATC’s Brexit support page:
