Question on 'foriegn income' and tax return

I’m a freelancer writer, using self-assessment, who has only been paid by UK websites up until now (UK pounds into a UK bank account). However, in my tax return this year, I have income from a US site which pays in US dollars (from a bank in Hong Kong) – but this money arrives directly, via bank transfer, in my UK bank account, in UK pounds (the bank performs the currency conversion). Do I just declare this income as normal on my return? Or, as there’s a section for foreign income (in ‘tailor your return’), do I use that instead? As the notes say, I am being paid ‘income from a person abroad’ so do I need to use this section? The YouTube tutorial seems to suggest that this is for money earned abroad, though, which is not the case here – it’s being paid by a foreign bank, but I’m earning it in the UK, in UK pounds, to be taxed in the UK. Any help would be appreciated!

Hi,
Your client's pay you in US dollars, so you would declare the payment in US dollars in your income in the tax return, but for the purposes of the tax return, converted to GBP sterling. You should not use the sterling figure in your bank account, as the exchange to sterling is not part of  your gross income. 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 your convenience, there are exchange rates here:
Exchange rates from HMRC in CSV and XML format
and for older rates here:
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! Thanks for your response, that makes sense. Do I need to fill in SA106, the foreign income supplementary section of the tax return, in my case? Elsewhere I have seen it suggested that this isn't required, unless you are already taxed on that foreign income abroad (and that this is only for those who want to claim Tax Credit on their foreign income, which I won't be doing, of course). Or do I just convert the US dollar amounts I've been paid to sterling, as you've outlined, and then simply incorporate those (converted) sterling payments within my normal self-assessment declared income?

Hi,
Please see guidance using the link below:
Tax on foreign income
Thank you

Thank you for your reply. Just to clarify: I am a sole trader living in the UK. Some of my monthly work in the UK is payments from a US website, income in US dollars, paid to my UK bank account. As far as I understand it, this does not constitute ‘foreign income’ so SA106 is not filled in. I include this income in my gross earnings for self-assessment as part of my UK income? Am I correct?

Hi,
That is correct. You include it within your UK turnover income.
Thank you

Thanks again, you've been most helpful. Also to check one final thing - I should declare the amount I invoice, I assume? So for example, I perform some work and invoice for $500 to the client. So, $500 (converted to GBP sterling) is the amount recorded in my UK turnover income on my tax return. As opposed to the $470 dollar amount I actually get when it arrives in my bank account (due to the client's bank charging transfer fees).

Hi, Daz_Allan,
That is correct 
Thank you.