Exchange rate fee in using PayPal for foreign payments
I use PayPal to pay a lot of my foreign invoices.
When I log an invoice in my accounting system I use the exchange rate as per XE. com at the invoice date to convert it into British pounds.
I then make the foreign payment through PayPal. They convert the foreign payment into British pounds using their rate.
I therefore have a difference in what I recorded the invoice for in GBP in my accounting system and what it has cost me to make that foreign payment using PayPal. At the moment I just move the difference to Forex movement on the profit and loss.
Is this the correct treatment because I know PayPal charges a 2.5% exchange conversion fee so technically not all the exchange difference is down to the exchange rate movement. Some of the movement is down to the fee PayPal charge to convert the currency.
- How will auto enrolment affect accountants? 1,472 41
- Purchase of shares and goodwill 137 3
- Directors Remunerations and Employees on CT600 85 1
- Anyone Heard of This Outfit? 252 1
- How can I tell what returns are outstanding on HMRC online? 232 3
- Practice management - that old chestnut....... 1,232 19
- Suppliers for Online Card Payments? 363 6
- Go Cardless 383 10
- Self assessment tax arrears 328 3
- Mehjoo 334 2
- Tax Return Member LLP 149 1
- How to prove income for a mortgage if you have no SA302s 406 5
- Amazon Fees, Sage VAT/Tax code T20? 198 4
- SA302 345 7
- US Employment Income - Double Tax Treaty 295 13
- Bringing money to Uk 300 4
- Capital Allowances on Furnished Holiday Lets Business 219 4
- Hmrc software 262 3
- What expenses can be claimed after a move to Cornwall? 197 1
- Hosted email exchange 192 5
- Xtuple 521
- Qtac payroll for bureau 357
- Confused - Professional Association a Mutual trader, or not? 300
- Industrial & Provident Societies 294
- Data transfer from Sage Line 50 to VT Transaction+ 238
- VAT Payable on Expenses for Non-VAT Registered Ltd Co 213
- Why would HMRC offer to close an investigation by contract settlement 211
- Domain name sale and limited company 182
- CIS schemes 179
- Director legal fees in loose connection to the company 155