late foreign income payment exchange rate

Hello, Which month's exchange rate should I use when a foreign income for April is only paid in June? Should I use April exchange rate? or June exchange rate when reporting the income in the self assessment? Appreciate much your kind advice. Thanks.

Hi HYDC,

You are free to use any of the official exchange rate options, monthy, annual or spot rate.  

The choice is up to you:

Exchange rates from HMRC in CSV and XML format

Thank you. 


 

Dear HMRC Admin 25 Thank you for your reply. My question is actually if I should use the exchange rate for the month the income is earned? or to use the exchange rate for the month the income is actually received? Since there is a time gap for the income payment. Hope you can help clarify. Many thanks.

Hi,

This would depend on the method of accounting used. If you use the traditional accounting method, you would use the exchange rate at the time the income is earned, which is the arising basis.  

Alternatively, the cash basis is a simplified accounting method, in which you would use the exchange rate at the time the money was received. You can see more information here:

 Business records if you're self-employed

You also have the choice of using the spot rate or the annual average rate. Each option is acceptable. The official exchange rates can be found here:

Exchange rates from HMRC in CSV and XML format

Thank you.