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Exchange rate

Exchange rate

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I need your help with regards to the exchange rate. I have a few invoices in a different currency and just wonder where to find the exchange rate that I can use. Can I use http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_RatesCodesTools even if I am not VAT registered (self employed)? I paid for the invoices by cash so the bank's exchange rate is not available (no rate differencies then). Any help would be appreciated.   Thanks in advance.

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By johnt27
14th Jun 2013 08:49

If you paid for the invoices in cash what was the exchange rate that applied when you presumably exchanged sterling for the foreign currency? I tend to use xe.com for historic exchange rates but you can use any source that is reliable. The difference between the invoice exchange value and the cash paid will be your forex gain/loss recognised in P&L.

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By Euan MacLennan
14th Jun 2013 09:40

OANDA

We use OANDA for live and historical exchange rates.

You should only use the HMRC VAT exchange rates for VAT purposes.  They are just a prediction for each month based on the previous month, but are an accepted method for VAT returns.

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By Martac9871
14th Jun 2013 23:02

Thank you. I have a bank

Thank you. I have a bank account in a foreign country so didn't have to exchange sterlings.  As with regards to the exchange rate for tax purposes - BIM39507 and BIM39505 says that for the tax purposes 'traders may use (...) monthly average rates published by HMRC for VAT purposes . I understand that it is mainly for VAT purposes but I don't believe that someone who is VAT registered would use a different exchange rate for non- VAT taxes?

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