Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 22 Mar 2023 00:19:50 GMT by Alex Emberton
I have been freelancing this fiscal year for companies in the EU. I have been paid exclusively in euros for this work and all invoices are in euros. The money currently sits in a Wise bank account. Am I right in thinking that if I change the euros to GBP before 05/04/2023 in one transaction, I will only need to use the exchange rate for that transaction when calculating my self assessment and not have to bother tracing the exchange rate back for the year? I.e. if the exchange rate is currently €1.1 to £1 and I have €1100, I could convert that to £1000 and then just count this as earning £1000? So I’d pay about 20% tax and be left with £800? Also, if I waited past 05/04/2023 to do this, would I have to count the money as earned in the 23/24 financial year, even though the euros were paid to me in 22/23? Thanks
Posted Mon, 27 Mar 2023 14:16:17 GMT by HMRC Admin 19

You would declare the income in the year that it is paid to you irrespective of the currency and you can choose which date to use as the conversion date. You can see more information here:

Exchange rates from HMRC in CSV and XML format

Thank you.

You must be signed in to post in this forum.