Client is a sole trader UK based online gamer and gets income daily in USD into a USD paypal account. She withdraws amounts as she needs but not on a regular basis and also uses the account for personal purchases. The money is therefore not acually exchanged on a straightforward USD to GBP basis. No tax is taken at source from the income and client has relevant forms stating this.
Due to the fluctuations in the exchange rate in the last year, it works out better for the client if I use HMRC average rates rather than the monthly ones.
It feels wrong to use the annual exchange rate but can someone point me to where it says one cannot use the annual average rate. In this case the difference to the tax/NI bill would be circa £500 so not massive but definitely worth it to this particular client.