UK Tax Return

[gaydemon_jr]

I was just going through my tax return, and this is the first time I have had to fill one in.

The problem I am having is, when you receive a cheque in dollars, how do you convert that to sterling? Do you convert to sterling on the date received, date paid or the whole sum at the end of the tax year?

Any help would be really appreciated - otherwise I will have to seek a specialist hehe :D

[gaydemon]

I found some information that might be of help:

http://www.hmrc.gov.uk/euro/faqs_lgbus.htm#1b

That page is with information in regards to companies, but im fairly sure its the same for individuals.

However, I'm sure you can do a yearly spot rate instead. I really cant see you having to calulcate what it was every month.

So each year you do your return you go here:

http://www.hmrc.gov.uk/exrate/usa.htm

And look up the average Rate for the year you are doing returns for and use that to convert anything you earned into Sterling.

[abostonboy]

Interesting question. I have always deposited the check in my bank account and used that rate that when in in US dollars if I was apid in another currency.

[gaydemon_jr]

Excellent, thanks for that! :)

[abostonboy]

Excellent, thanks for that! :)

But I have no idea how the UK works. Just seems that if you deposit a check and it goes in your bank account at 200 sterling, how can you argue that that is not what you earned?

[gaydemon_jr]

But I have no idea how the UK works. Just seems that if you deposit a check and it goes in your bank account at 200 sterling, how can you argue that that is not what you earned?

The account is a foreign currency account. So it stays in dollars. The reason I / many people do this is the excessive charge you get on putting a dollar cheque into a sterling account from the bank. I paid a $70 cheque in once and got £12 cleared funds!