Average for the year exchange rate for Self Assement

I wish to use a yearly average for converting all my USA income to pound for self assessment. The HMRC page exchange-rates-for-customs-and-vat-yearly lists two figures. Is there one must I use, or can I choose the one that lets me pay the least tax? Average for the year to 31 March 2023 - USA Dollar USD 0.8202 1.219267 Average for the year to 31 December 2022 - USA Dollar 0.8003 1.249458

Hi,

You are free to use the yearly rate, the monthly rate or the spot rate.  If a conversion was undertaken to deposit the money into a UK bank account, then this figure can be used.  

The official exchange rates can be found here -

Exchange rates from HMRC in CSV and XML format

Thank you

Which yearly rate are you talking about. There are 2 Average for the year to 31 March 2023 or Average for the year to 31 December 2022 Which one, please read my question.

Hi,

You can use either of the yearly rates mentioned in your original questionS for the 22/23 tax year.

Thank you.

When converting and transferring US income to GBP/UK bank accounts, you use 1.219267. $48,000 / 1.219267 = £39,367.91531305284 or £39,367.92/£39,368 of taxable UK income. When reporting UK income to the United States IRS, you could use 0.8202. £35,000 / 0.8202 = $42,672.5188978298 or $42,672.52/$42,673. Last year, the IRS provided their rate for converting GBP income to USD, but I'm not sure if it's the same as the UK's rate. Although most of my income will be excluded from paying US taxes (qualifying expat who earns less than $120,000 a year and 66), we still have to file with the IRS unless we were to renounce citizenship. This will be my first full year in the UK as a sole trader collecting a US pension/social security. But from my estimates so far, you will pay less UK tax using the monthly conversation rates verses the annual flat rate. This is some partial US income of mine from April to September, so I'm glad I decided to use the monthly conversion rates last year. $10,935 / 1.219267 = £8,968.51 $10,935 / monthly rates = £8,759.44 Hope this helps! ;) 

Hi Frank Biganski,
Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.  
For your convenience, there are exchange rates at:-
 Exchange rates from HMRC in CSV and XML format
and for older rates at
Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009.
You are free to use any of the supplied rates or one of your own choosing.  
We cannot comment on the exchange rates required by another country.
Thank you.

Hello, I need HELP. I need the HMRC Monthly exchange rates for every month in 2017 & 2018. I need to pay my back tax owed and may I please have these exchange rates. If you are not able to provide them for me what am I to do to give you an accurate payment? Thank you.

Hi,

Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.  
For your convenience, there are exchange rates at:

The National Archives - Exchange rates from HMRC in CSV and XML format

For older rates, please see:

National Archives - Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009

You are free to use any of the supplied rates or one of your own choosing.

Thank you.

Hi HMRC Admin, I understand that the Average rate reflects the mean average of all exchange rates which have been present in all Monthly exchange rate files for the 12 month period leading up to the given Average rate publication. Does it mean that the December 2023 Average rate applies to the income received during the period from January 2023 to December 2023? Many thanks.

Hi jess810

Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.  
For your convenience, there are exchange rates at
https://webarchive.nationalarchives.gov.uk/ukgwa/20231016190054/
Exchange rates from HMRC in CSV and XML format
and for older rates at
https://webarchive.nationalarchives.gov.uk/ukgwa/20100202113554/
Exchange rates from HMRC in CSV and XML format
You are free to use any of the supplied rates or one of your own choosing.

Thank you

Re: foreign income details section of the self-assessment, there's a question "Were you UNABLE to transfer some or all of your overseas income to the UK?" 1. Does this refer to technical inability to transfer or also include the personal decision not to transfer? I chose not to transfer for 2022/23 (but I was technically able to), I should tick the Yes or No box? 2. For 2023/24, however, I have transferred a portion of foreign savings to the UK. BOTH interest & principal were paid into the same account. Does HMRC treat the transfer first as interest income as opposed to capital? 3. For 2023/24, I received a lump sum as director's fee. Should I convert it based on arising basis, which is monthly, using the average rate of that month? I originally thought I didn't have to submit self-assessment as all tax were paid via PAYE except for

Hi,

1. This only applies if the laws of the country stop you from transferring the money. if its a personal choice you still need to declare it.    
2. You dont include any capital that you transfer  
3. You can use any of the rates for the tax year

Thank you.