Invoicing in Euros - Bank Account Question

[ASB]

It seems that everybody has slightly different experiences.

From a point of view of accounting there is an official rate which can be obtained from HMRC web site. This is updated monthly and is the value you should use for accounting purposes since you have to value this in sterling.

The difference between the "official" rate and the actual rate is book as either other expense or other income depending on which way round it happens to go.

From a view of payments we had Euro accounts at various times, however when we last banked with A+L I just got the clients to pay into this via the IBAN. They converted to euros - less fees of course, however the rate was OK.

[expat]

It seems that everybody has slightly different experiences.

From a point of view of accounting there is an official rate which can be obtained from HMRC web site. This is updated monthly and is the value you should use for accounting purposes since you have to value this in sterling.

The difference between the "official" rate and the actual rate is book as either other expense or other income depending on which way round it happens to go.

From a view of payments we had Euro accounts at various times, however when we last banked with A+L I just got the clients to pay into this via the IBAN. They converted to euros - less fees of course, however the rate was OK.

Do you have a link please?

Pay via IBAN: indeed. Problem solved, no hassle.

[ASB]

Do you have a link please?

Pay via IBAN: indeed. Problem solved, no hassle.

My view on rates seems to be different to yours. Maybe it should only have been used for VAT. In any event it was a couple of years back since I did this.

http://customs.hmrc.gov.uk/channelsP...atesCodesTools
http://customs.hmrc.gov.uk/channelsP...ument#P41_2102

Also the guidance does let you use other rates but the advice I received was always to use the "official rate" because they can't argue about it.

Assuming one is maintaining accounts in GBP this only really leaves the problem of what rate to use to value the outstanding invoices at year end.

[expat]

My view on rates seems to be different to yours. Maybe it should only have been used for VAT. In any event it was a couple of years back since I did this.

http://customs.hmrc.gov.uk/channelsP...atesCodesTools
http://customs.hmrc.gov.uk/channelsP...ument#P41_2102

Also the guidance does let you use other rates but the advice I received was always to use the "official rate" because they can't argue about it.

Assuming one is maintaining accounts in GBP this only really leaves the problem of what rate to use to value the outstanding invoices at year end.

ISTM that my view on rates is exactly the same as yours, with the minor difference that I never did find an official HMRC rate, so used the BofE rate instead; on the understanding that (as I thought) there is no really official rate.

I also agree with you that if you use HMRC's rate then they can hardly argue about it.