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Posted Sun, 28 Jan 2024 01:30:14 GMT by
Hi, I sell digital products only via online marketplaces (Gumroad and Etsy) and I have questions about calcuating the turnover and expenses. 1. Gumroad processes everything in USD (but the product listing is in GBP) so final sales and fees values are calcuated in USD. The payout is converted to GBP before processed. The work is done in the UK. As I don't have the GBP value of the sale price and the fees I am using the official HMRC monthly exchange rates to calcuate it for each transaction. However, when taking the sum of this converted value for the tax year and taking the net value, it yields a higher amount than the actual payout (to my bank account) for the tax year. What do I do about this exchange rate difference? 2. Etsy collects sales tax on some international sales. Etsy collects and remits sales tax automatically. Am I correct in including this tax in the turnover value and then as an expense, or would I exclude it completely? Thank you
Posted Wed, 31 Jan 2024 10:25:17 GMT by HMRC Admin 19

You will include the total income that is paid to you, and for any sales tax deducted you would include this as an expense.

For the exchange rate, you can use any of the spot rates on the HMRC site to your advantage.

Exchange rates from HMRC in CSV and XML format

Thank you.

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