Should I accept payment in EUR or GBP

[stek]

My Agency is based in UK. I will be working from home with client visit once in a month so I am not sure about VAT situation.

Sterling then and vat as normal.

[TheCyclingProgrammer]

My Agency is based in UK. I will be working from home with client visit once in a month so I am not sure about VAT situation.

You're invoicing a UK agency so fairly certain you invoice with UK VAT. To be honest I think you should be invoicing in GBP too. The agency is trying to pass the exchange rate fluctuation risk on to you.

[FrontEnder]

First of all, is your agreed rate in pounds or euros?

Or is the dispute over what your agreed rate is?

[NoviceContractor]

First of all, is your agreed rate in pounds or euros?

Or is the dispute over what your agreed rate is?

The agreed rate is in GBP. I have managed to convince agency that the rate will be in GBP.
I guess, that I will be charging VAT to the UK based agency who will then claim it back as the actual client is based in France. Is that correct?

Thanks

[NotAllThere]

the contract may be in Euro, with the agency actually paying in GBP. I would insist on a clause triggering a renegotiation of contract if the exchange rate changes to more than 10% (against you) of what it is currently. i.e. mitigate forex exposure.

[NotAllThere]

The agreed rate is in GBP. I have managed to convince agency that the rate will be in GBP.
I guess, that I will be charging VAT to the UK based agency who will then claim it back as the actual client is based in France. Is that correct?

Yes - your client is the UK agency.

[ShandyDrinker]

the contract may be in Euro, with the agency actually paying in GBP. I would insist on a clause triggering a renegotiation of contract if the exchange rate changes to more than 10% (against you) of what it is currently. i.e. mitigate forex exposure.

Yes - your client is the UK agency.

^^ These.

Having worked in Dublin for a while when the exchange rate went to sh*t in 2011/12 (went from approx 1.10 to 1.28) you really do have to watch the exchange rate. NAT's comment about a clause triggering a renegotiation of the contract is a good one and something I wish I had done.

[psychocandy]

Had a contract once paid in Euros (but rate was quoted as such too). Working in UK, via UK agency but client was French.

Would I do again? Not if I can help it. Its a bit of hassle.

Like others have said, if rate goes down (it did for me) you see your rate disappearing down the pan. And, of course, no-one cares (and neither should they).

Getting the money converted. Yes most banks will let you have a euro account too. Then you get a crap rate to move from one account to another.

VAT and invoices. Have to be in sterling also. Have to decide how to do exchange rate etc. Hassle.

BTW - dont get euros paid into a sterling account - the buggers will charge loads to convert it at a crap rate.

I used a company called currency fair to change the euros. Its like a peer to peer thing. You upload euros (bank charges a small fee for BACS) you swap these to sterling and then download back to sterling account. Works out way cheaper too.

Although first time I did this I was a bit twitchy about making a BACS transfer of £10K and then never seeing it again. But would recommend them - never any problems.

[northernladuk]

Would I do again? Not if I can help it. Its a bit of hassle.

Coming from the guy that claims JSA. :

[psychocandy]

^^ These.

Having worked in Dublin for a while when the exchange rate went to sh*t in 2011/12 (went from approx 1.10 to 1.28) you really do have to watch the exchange rate. NAT's comment about a clause triggering a renegotiation of the contract is a good one and something I wish I had done.

Same time I was doing the euro thing. Clause sounds like a good idea....