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Posted Tue, 29 Apr 2025 15:26:36 GMT by Daniel
Hi, I have a query related to a supplier invoice and how to claim this cost in my self-assessment return. The supplier is UK based and charges me in Euros. It is a VAT Invoice so has the equivalent GBP sub-total and 20% VAT values. For my VAT return, I was advised to use the GBP equivalent values listed on the invoice, so this matches from a VAT perspective. The final cost to me however will vary from those GBP figures on the invoice, as my banks conversion rate is different. My questions are: 1. Am I right in assuming for my self-assessment return, I use the GBP cost to me, i.e the final GBP cost on my bank statement, not the GBP figures on the Invoice? 2. If so, as I will be preparing my self-assessment excluding VAT, I can deduct the equivalent of 20% VAT from the final GBP cost on my bank statement to give me the net cost for self assessment? For reference, I use cash-based accounting. Many thanks for your help
Posted Wed, 30 Apr 2025 10:42:55 GMT by HMRC Admin 17 Response

Hi ,
 
You use the value of the conversion to pounds sterling at the time of conversion. 

VAT can be deducted as an expenese, you either need to use SA103F for a paper tax return or select the option

'yes' when asked if your turnover is more than £85,000, even if it is not.

Thank you .

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