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thanks for the reply.
I earn small amounts every single day of the year. Do i really have to generate a daily table of income against a daily exchange rate?
A fairly time consuming job.
Currently i keep a monthly record of income from the various overseas sources.
Thanks for the help
So its not set in stone that it has to be daily or monthly conversion rates for daily income? It just cant be yearly exchange rate?
Is it an issue if i dont actually withdraw the money (ie physically convert it to GBP) at the end of each month.
If i withdraw it yearly the exchange rate might be very different than taking it 12 times a year. sometimes in my favour sometime not.
Last point to clarify i promise.
I accept account for monthly conversions when money was earned, good idea.
But I am still not sure from your answer if I HAVE actually physically convert it from USD to GBP monthly.
For example, if i converted $1000 in Jun 2014 it would be worth about £540, If i did it jan 2014 it would be worth £650.
Also its not actually possible to physically withdraw the earned income every month, as at source i can only request the money and it might take them a month (some more, some less) to pay me.
thanks again for the help.
Ok thanks, ***** ***** long as i account for monies earnt from source monthly and convert that monthly from USD to GBP for tax purposes, that should be perfectly fine for tax purposes?
The fact i dont (cant) withdraw the money from my $ account to my £ account in sync with the above monthly tax calculations is acceptable to the Tax Man?
The reason for this is some US sources withhold the monies earnt until a certain amount is reached , ie $100, only then can i withdraw, even though i actually earnt it months previous.
Just spoke to HMRC, they tell me it is fine to use the yearly average exchange rate as quoted on the HMRC website.