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.
- Mortgage deposit Gift 218 10
- Loan to a related company 263 13
- Any Scottish members out there? 8,416 316
- Partnership to Sole Trader 57 2
- FIFA game and making money 561 8
- Amending Share Capital 97 4
- Umbrella Company 49 1
- planning to be self employed bookkeeper what do i need to do before i start? 406 6
- Family loan 538 9
- Anyone out there with charity accounts experience 79 2
- Disclosure of pending convertible loan notes? 237 11
- Father selling son 25% of Property with view to selling rest within 5 years 120 5
- What should I do for 'free' 252 3
- Bonus/Shares 103 5
- Settlement re Offshore Bond 158 1
- EC sales list 100 2
- Repairs after a rental business ends 429 13
- Anti Money Laundering Checks 353 4
- Expenses of overseas employment 182 3
- Paying tax in Angola and uk? 134 2
- Raiders of the Lost Tax File 1,144
- Chartered Accountant in County Down N.Ireland 375
- IPP (International Pension Plan) income 301
- National Insurance 284
- valuation of intangible asset FRS10 and FRS20 245
- Payments on account coded out?? 242
- Cass 5 FCA Client Money Software recomendation 226
- Unnecessary S9A Enquiries 206
- Non Resident 197
- Franchise income and costs 182