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tax return - payment in foreign currency via Paypal

2 replies

pennycarbonara · 16/08/2017 12:16

How to deal with this?
In some instances, money was transferred to UK current account in £s, sometimes on the same day as being paid, sometimes not.
In others, the money was spent within Paypal gradually. Once or twice in the original currency paid, others converted into £s at point of payment (so different exchange rates on different days).

OP posts:
pennycarbonara · 16/08/2017 14:56

Does it use these standard per-month exchange rates?
www.gov.uk/government/publications/hmrc-exchange-rates-for-2016-monthly
That would make it much more straightforward.
Or are those for VAT rather than self-assessment?

OP posts:
PoppyPopcorn · 28/09/2017 16:47

Hello, have only just seen your post and was in exactly the same position a few years ago as a lot of my earnings were in dollars.

After a VERY long conversation with someone at HMRC who didn'treally get what I was on about, I finally spoke to a supervisor who told me that HMRC set a standard, average exchange rate for the year for every currency. www.gov.uk/government/publications/exchange-rates-for-customs-and-vat-yearly

So you add up all your earnings in dollars (or euros, or whatever else) and use their average rate. On the year I did this, i put a wee note in to state my $ earnings and which rate I'd used.

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