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Posted Fri, 08 Dec 2023 20:01:05 GMT by
When trying to file my companies first corporation tax return online I am asked whether we have dealt with any foreign currency transactions. If I select yes I am told we have to file our tax return using a 3rd party. I would like to file myself online so I would like some clarification on whether these transactions 100% count as foreign currency transactions My business is a digital agency that sells its service to mostly uk companies but sometimes foreign 1) We use paypal to pay foreign company for a online service, the paypal invoice comes through in USD but the payment is made using our business bank account in GBP 2) I received income from Upwork (a US based freelancing site) in USD to our paypal, this is then withdrawn to our business bank account in GBP. 3) A US based company pays us for our service via direct bank transfer, the money comes through to our bank in GBP but I assume they used USD to make the payment and are of course a foreign company I am wondering because these payments and money we have received are converted to GBP and we calculate our accounts and records based on GBP converted on the day of sale or purchase and we are not holding these funds in USD these might not count.
Posted Tue, 12 Dec 2023 09:05:03 GMT by HMRC Admin 8 Response
Hi,
1), 2) and 3) count as foreign currency transactions therefore HMRC’s online filing software is not suitable.
The company’s tax return will have to be filed using commercial software.
For further information about foreign currency transactions please see the guidance in HMRC’s Corporate Finance Manual at:
CFM61040 
Thank you
 
Posted Sun, 23 Jun 2024 20:33:47 GMT by Ben Huckvale
I was also searching this forum with the same question. Another HMRC Admin had a different response here: https://community.hmrc.gov.uk/customerforums/bt/12b94dff-5d56-ee11-a81c-002248c61b97

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