How to Start a Translation Business: A Complete Guide

Starting a translation business in the UK can feel intimidating at first. You know you have the language skills, but the business side? Registering, pricing, taxes, and finding new clients, it’s not exactly fun.

So, you wait, overthink, assume it’s too complicated or too risky, and you lose the momentum.

However, it’s far simpler than it seems, especially once you know which steps matter and which don’t.

Read on to learn how to start a translation business so you can attract clients who need exactly what you offer.

Key takeaways

• Choosing the right business structure matters
  Decide early whether to operate as a sole trader or a limited company. Sole traders have a simpler setup and keep all profits, while limited companies offer liability protection but do need extra admin.
• Professional credibility boosts client trust
  Joining recognised bodies like the Institute of Translation and Interpreting (ITI) or the Chartered Institute of Linguists (CIOL) helps clients see you as trustworthy and professional, especially for legal, medical, or certified translation work.
• Insurance is essential for protection
  Professional indemnity insurance (PII) protects against costly translation mistakes, while public liability and employers’ liability cover in-person risks and staff.
• Tax and admin management from day one
  Sole traders have to register for Self Assessment, while limited companies need Corporation Tax registration and, if hiring, PAYE.
• Using tools to streamline setup and compliance
  ANNA can streamline company registration, financial management, invoicing, and tax filing, letting you focus on getting clients and growing your business.

Which UK sectors drive the highest translation revenue?

The UK translation services market is valued at approximately £1.9–2.1 billion in 2025, reflecting modest nominal year-on-year growth of +7.25%.

The most in-demand languages are English combined with Spanish, Mandarin, and French.

10 niche markets to target first

If you’re not sure where to start or whether your target niche will be profitable, here are the best markets for a translation business at the moment:

• Legal Documents: High demand for certified contracts, patents; regulated precision needed
• Medical & Healthcare: Clinical trials, patient info; growing with NHS international ties
• Financial Services: Compliance reports, banking docs in London's hub
• eCommerce Localisation: Product listings, apps for retailers expanding EU/Asia
• Technical Manuals: Automotive/software instructions for exporters
• Marketing & Advertising: Transcreation for campaigns targeting multicultural UK
• E-learning Content: Courses, subtitles amid 14% sector growth​
• Public Sector: Government forms, immigration docs via frameworks
• Gaming & Multimedia: Subtitling, localisation for the UK gaming market
• Real Estate: Property listings, multilingual brochures for investors

How to start a business translation in 4 effective steps?

Launching your translation business requires covering different aspects, from choosing your name to planning your finances.

To make the process easier, follow a few straightforward steps:

1. Choose a company name and structure

When setting up your translation business, you’ll need to decide whether to operate as a sole trader or start a limited company.

Starting as a sole trader is the simplest way, as it includes a quick HMRC registration, minimal admin, and an annual Self-Assessment tax return.

You keep every penny of profit, but you also take on unlimited liability, meaning your personal finances aren’t protected. You’ll pay income tax plus Class 2/Class 4 National Insurance.

Starting a limited company means that you have to incorporate at Companies House with a company name, select an SIC (Standard Industrial Classification) code, and comply with annual filing and record-keeping duties.

What is a SIC code?

When you register your business, Companies House will ask you to choose at least one SIC code, which is a label that explains what your business does.

You can look up the SIC list on the Companies House website or while completing the online form.

Just type in ‘translation,’ and you’ll see code 74300 pop up. If you’re planning to offer other services as well, you can choose up to four codes in total. In that case, list the primary one first.

✨With ANNA, you can check your preferred business name’s availability, register your company with Companies House, and set up a business account in one go.

2. Register for taxes

If you set up your translation business as a sole trader, all the money you earn counts as personal income.

On the other hand, if you’re running your translation business as a limited company, you’ll need to register for Corporation Tax within three months of starting.

You can do this through your Government Gateway account using the company information you received from Companies House.

• Limited companies pay between 19 and 25% tax on profits, and the bill is due nine months after your accounting period ends.
• Missing the registration deadline can lead to penalties of up to £3,000.

If you hire freelance translators, make sure you understand IR35 rules, since HMRC can reclassify contractors as employees if the working relationship looks like employment.

If you're planning to employ staff, you’ll also need to register for PAYE (under Real Time Information).

This must be set up with HMRC within a month of paying salaries, and it covers income tax, National Insurance, and pension auto-enrolment. If you only hire freelancers, you usually won’t need a full PAYE setup. Just keep records and issue payment summaries.

Not complying with PAYE rules can result in fines ranging from £100 to £3,000 per employee.

Check this out

With ANNA, managing your translation business’s finances becomes much simpler. Payroll, VAT filing, and Corporation Tax are all organised in one place.

When you register a new business, ANNA takes care of everything you need, including your confirmation statement, so you can be confident you’re meeting all HMRC requirements from day one.

VAT registration, calculations, and filings are also covered, with personalised reminders to make sure you never miss a deadline.

3. Check what certifications and licenses you may need

You don’t need any special licences or mandatory certificates to start a general translation business. Translation falls under the category of professional services without regulated licensing, unlike healthcare or finance services, for example.

As long as you register your business, whether that’s with Companies House for a limited company or with HMRC for tax purposes, you’re legally good to go.

However, that’s not to say that certain certifications or memberships can’t help.

4. Consider additional certification

Joining recognised bodies or gaining industry credentials can boost your credibility, reassure clients, and sometimes open doors to higher-value work.

Two of the most recognised names are:

• The Institute of Translation and Interpreting (ITI)
• The Chartered Institute of Linguists (CIOL)

They’re known for their high standards and commitment to ongoing professional development, all things clients appreciate when choosing who to work with.

1. Institute of Translation and Interpreting (ITI)

The ITI is one of the UK’s main associations for translators, interpreters, and language service providers.

They offer membership levels such as Qualified MITI, which involves peer assessment and proof of experience.

Not only does becoming a member boost your credibility, but it also gives you access to a strong community, helpful resources, and a directory where clients look for trusted professionals.

2. Chartered Institute of Linguists (CIOL)

CIOL awards respected statuses such as MCIL and Chartered Linguist (CL). You can earn these through qualifications such as the DipTrans or by submitting a detailed portfolio of your work.

These credentials are especially useful if you plan to offer certified translations, as the accreditations prove you’ve met high professional standards.

A quick tip:

If you’re interested in public sector interpreting, the National Register of Public Service Interpreters (NRPSI) is worth joining. It requires Level 6 qualifications and a strong code of conduct, making it a trusted register for public bodies.

Also, some types of work may require a Disclosure and Barring Service (DBS) check.

You only need it if your translation work involves public sector contracts, interpreting for sensitive situations, such as:

• Courts
• Healthcare or social services
• Direct contact with children or vulnerable adults

Joining the NRPSI is a good idea if you plan to take on public-sector or community-based projects.

However, for general commercial translations, focus on professional memberships like ITI or CIOL, professional indemnity insurance, and GDPR compliance instead.

Pro tip:

Avoid a generalist approach. Specialise in 2–3 areas, such as legal or medical, to stand out amid the competition. ​

5. Get insurance policies

For a translation business in the UK, professional indemnity insurance (PII) is the key policy to have.

It protects you if a client makes a legal claim due to an error, misunderstanding, or financial loss caused by your work.

You should also consider public liability insurance, which covers you if someone is injured or their property is damaged as a result of your business activities.

If you plan on hiring staff, employers’ liability insurance becomes a legal requirement. Without it, you could face fines of £2,500 per day.

Other helpful policies include:

• Business equipment insurance to protect your laptop, software, and tools from theft, damage, or loss
• Legal expenses insurance in case you need support with disputes, tax issues, or compliance matters
• Cyber insurance if you handle sensitive client data, offering protection against data breaches or GDPR-related claims

A quick tip:

Aim for PII limits of 2–3 times your annual turnover. A serious mistake or legal claim could easily cost more than your yearly income once you factor in legal fees, compensation, and damages.

How much does it cost to start a translation business?

Starting a translation business can cost as little as £500, depending on scale, location, and tech investments.

How to save money on company registration and Self-Assessment Tax with ANNA?

Did you know that starting from 2026, UK sole traders will need to file their taxes digitally four times a year?

Here’s the tricky part: many providers will try to push expensive accounting software that you’ll have to install, learn, and manage yourself.

At ANNA, we make it simple and free. For your first year, we give you a 100% discount on our Making Tax Digital (MTD) service, so you can stay compliant without the hassle or extra costs.

As for the company registration, Companies House will double the pricing from February 2026.

However, here at ANNA, we’ll continue doing it for free for a year, as part of our service.

How to start a translation business easily with ANNA

ANNA is an all-in-one business account for money, invoicing, accounting, expenses, bookkeeping, and taxes.

What we bring to the table:

🔥 Open a business account and register your business within one day, with Companies House fee included.

🔥 Use our free Company Name Checker to see your desired name’s availability and get suggestions in case it’s taken.

🔥 File your Self Assessment for free, no expensive or complicated software needed. We automatically collect data from your accounts, prepare your returns, and file them for you.

🔥 Keep all your documents safe, sorted, and accessible 24/7.

How we help with taxes and returns

Our +Taxes solution automates your tax calculation and filing, and:

• Calculates the most tax-efficient amount you owe
• Prepares and files Corporation Tax directly with HMRC
• Calculates and submits your VAT returns and manages PAYE for your team

Try ANNA today to see how you can start a translation business quickly and without hiccups.

FAQ:

1. Can I become a translator without a degree?

Yes, you can. You don’t need a degree to work as a translator in the UK.

While a language or translation degree can help, plenty of translators build successful careers through experience and by joining professional bodies like the Institute of Translation and Interpreting (ITI) or the Chartered Institute of Linguists (CIOL).

These memberships show clients that you’re credible and committed to high standards.

2. How do I get started as a translator?

First, decide whether you want to work as a sole trader or set up a limited company, and make sure you register with HMRC (and Companies House if needed).

Then, focus on building your skills, portfolio, and credibility. Joining professional bodies like the ITI or CIOL can help, as well.

Start finding clients through your network, freelance platforms, or direct outreach, and don’t forget to set up the right insurance and business systems to stay protected.

3. What type of translators are most in demand?

The translators in highest demand in the UK tend to specialise in legal, medical, financial, and technical fields.

There’s also steady demand for translators working with public-sector organisations.