using the currency rate for the working month or the date that received payment?

Hello, Let say I am self employed for August 2022 and I received the consultant fee in other currency at early September. Should I use the August or September rate please?

Hi,

Assuming that you use the cash basis when reporting your self-employed income to HMRC, please use the September exchange rate.                                        

HMRC exchange rates for 2023: monthly

Thank you.

Yes I think I use the cash basis but just want to confirm the definition of cash basis if there is any? Also, the paid date of my March consultant fee is 6th Apr 2023. Should I include this in the next tax year, i.e. 2023-2024? Thanks.

Hi,

For a definition of cash basis: 

Cash basis

For your payment scenario, you will declare the income in 2023 to 2024.

Thank you.