Work in UK pay in Euros

[redgiant]

Thanks for all the responses.

Why not arrange an FX forward contract.

Agree a rate and there's no risk.

Forward Currency Contracts: Buy and Hedge your FX at the best exchange rates

It costs to do this unfortunately as BB has mentioned. If the contract was longer than six months I would consider it.

I always bill US clients in USD. You can factor in a margin for currency fluctuations if you want, but don't over-complicate things with triggers for different rates. As WiB notes, Cable has been in a tight range post crash, and it's unlikely to exit that range any time soon. I'd focus more on whether you're billing a sensible amount. There's a reason they're looking for YourCo rather than someone local, and US clients (in my experience) will generally pay more anyway (SMEs included).

I was told I was expensive by some agents here in the US for a similar role so I must be on a good rate. I have done work in the UK before with this SME clientco so they know I am worth it .... or so I hope so

You are a business. You can negotiate whatever makes sense to both parties. There is no "usual practice" to which you must conform, you and your client can determine which practice you want to use.

If you negotiate a currency conversion adjustment in the contract that benefits one side more than the other, expect that the other side will want something in return.

If the adjustment occurs symmetrically (up or down), then you can argue that it is neutral, but it really isn't. They might benefit, but they also might lose out badly. They are taking on the risk if they do this. A currency broker would let you lock in rates, but they would charge for it. So you can ask, but don't be surprised if your client says no or wants a concession elsewhere in return.

Cable rates are pretty stable. Unless you are setting up a long-term contract, I probably wouldn't bother. If you are looking at less than a year, the likelihood of drifting much more than 10% either way from today's rates isn't very high. That's not the case with other currency pairs, but with GBP/USD it is. The rates have gone up for a time to around 1.7 and down to near 1.45 or so, but for years it has been mostly sitting in the 1.55 to 1.60 range, right where it is today.

XE.com - GBP/USD Chart

I have noticed the pattern too however there has been news last week of the Fed buying gold to mitigate against inflation and the rising dollar. I suspect the change will be minor though as there is always mixed messages about interest rate increases. I don't think they will increase the rates at all until to later next year or even post the 2016 election.

Why the Fed is driving gold prices higher - MarketWatch

I'm going to go with the set $ per day rate for the duration of the contract and if there is a large change in the exchange rate during that time then then the client and I can discuss the day rate - no need to complicate things too much.