Calculate tax based on USD to GBP?

Cash basis

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Hello,

Please provide advice to this scenario:

A self-employed sole trader received regular monthly payments in USD into a Transferwise account for 19-20 tax year. That person trades online i.e. sells stuff to the world online from their home in the UK and is registered in the UK for tax purposes. This means they cannot spend the USD received and must transfer it into their UK bank account in order to 'access it' i.e. withdraw it and 'spend it'. So, they transfer the USD held in transferwise into their local UK bank account. The time between withdrawals is a few hours to 1 day. My question is, is it OK, in terms of HMRC's rules, to calculate their tax due on these international payments based on the amounts received into their local UK bank account, not on the USD amounts held in a transferwise account? This is because: (a) calculating tax on the GBP takes into account transfer fees and bank charges; (b) they do not have to convert each payment themselves using historical exchange rates - so it is more efficient to simply calculate tax owed based on those GBP funds.

Paid USD into transferwise -> Transferwise USD to local UK bank account -> funds arrive within a few hours/days and are automatically converted to GBP, less any charges -> pay tax to HMRC based on those GBP funds.

Is this a legitimate and allowed way of calculating tax on profit for 19-20 self assessment tax return?  Thank you.

I think the question here is: what does HMRC define as first being paid and having control of the funds i.e. salary?

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