• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Better way of doing expenses in foreign currency"

Collapse

  • WordIsBond
    replied
    @ASB
    The link you cited is for VAT, which is probably helpful for OP, since he's asking about FreeAgent and presumably using it for his VAT reporting.

    You note well that the currency gain/loss matters in terms of invoices/payments, and that's the primary context in which it is used in my accounts. I do incur foreign expenses, but the main currency transactions are invoice/payments, since most of my clients are foreign.

    Leave a comment:


  • ASB
    replied
    WIB,


    https://www.gov.uk/guidance/foreign-...-into-sterling

    Yes, obviously "gain/loss" matters in terms of sales invoices and payments etc.

    If you use anything other than the period rate you will need to justify it. The entry into the books is the date that appears to matter for rate setting (whatever it is).

    --------
    You must carry out this conversion when you record the transaction in your VAT accounts, so they show the transaction in sterling.

    ---------

    Hoever as pointed out in an inspection the inspector will take a pragmatic view. In my case most stuff paid for was converted by bank or card company amd i just used that. It was adequate justification.

    I was pointing the op to the guidance to show there is a simple alternative for expenses that they could use if they wisj.

    Lump it all together into one expense claim and use the official rate. For personal paid expenses sometimes you will win a little. Sometimes lose a little.

    I believe what i wrote was accurate. Also to the extent that i sincerely doubt your accountants are "wrong" because they do something different. But i will concede that i could perhaps have phrased it better in a longer manner.

    Leave a comment:


  • SeanT
    replied
    Unless it's a massive amount, the amount it actually cost you is something that's generally known to you (via a bank / credit card statement) and indisputable. I think common sense applies here.

    Leave a comment:


  • WordIsBond
    replied
    Originally posted by ASB View Post
    You might find reding the hmrc vat guidance useful as to what rates and tax points should be used useful.

    Strictly **your** rate isirrelevant. It is the official rate at the point the transaction is recorded that matters.

    Of course a lot of peoplewill use what it actually cost them as the basis for an expense claim and hmrc may choose to query that. But probablywont care.
    If this comment is 100% accurate my accountant is doing it wrong.

    The official rate at the point of the transaction is the expense rate, but any difference between that rate and what it actually costs also matters. It is booked as currency gain/loss.

    I suspect my accountant is the one getting it right.

    Leave a comment:


  • ASB
    replied
    You might find reding the hmrc vat guidance useful as to what rates and tax points should be used useful.

    Strictly **your** rate isirrelevant. It is the official rate at the point the transaction is recorded that matters.

    Of course a lot of peoplewill use what it actually cost them as the basis for an expense claim and hmrc may choose to query that. But probablywont care.

    Leave a comment:


  • Chart Accountancy
    replied
    Originally posted by eoz783399 View Post
    Brilliant - thanks - I'll talk to my accountant and have a think :0)
    All our contractor clients like using FreeAgent. As said above, it is easy to enter foreign currency transactions. We include the cost of the software in our monthly cost. However, if your current accountant offers a bespoke portal, they would probably increase your fee to cover the licence or ask you to pay to FreeAgent directly. If you use an accountant that already partners with FreeAgent, your overall monthly accounting fee will be lower and you will receive more support from your accountant. If you decide to move to another accountant, you can simply transfer your FreeAgent account to the new accountant or gain ownership by paying for the subscription directly as this is yor own bookkeeping software account. The issue with larger accounting firms is that they offer a bispoke tool which you can only use whilst you are their client.

    Leave a comment:


  • eoz783399
    replied
    Brilliant - thanks - I'll talk to my accountant and have a think :0)

    Leave a comment:


  • jamesbrown
    replied
    Originally posted by eoz783399 View Post
    that sounds better - did you stay with the same accountant?
    No, I moved. I imagine you could stay if you wanted (many accountants seem to be attune to the move towards FA), but I expect you'd be paying for FA yourself and, effectively, subsidising a portal that you wouldn't be using. Obviously, if you're particularly happy with your accountant, it may be worth sticking around. FWIW, I moved towards my company year end, and had the accounts entered into FA for that year in less than half a day.

    Leave a comment:


  • eoz783399
    replied
    that sounds better - did you stay with the same accountant?

    Leave a comment:


  • jamesbrown
    replied
    I switched to FreeAgent recently (for a similar reason: I was previously using a bespoke portal that couldn't handle foreign currencies), and it's pretty effortless for the vast majority of foreign currency transactions. Certainly, invoices and expenses in foreign currencies are easily handled in FA.

    Leave a comment:


  • eoz783399
    started a topic Better way of doing expenses in foreign currency

    Better way of doing expenses in foreign currency

    Hi,

    I'm currently contracting in Belgium, so I have lots of subsidence expenses in euros.

    I use Nixon Williams Vantage - which I was very happy with when I was working in the UK, but it's become a bit of a nightmare as it doesn't handle foreign currency transactions.
    I was doing manual conversions when I entered my expenses, but now I've realised I should be doing historical rates (i.e. the rate at the time I made the purchase) which will make my admin take even longer.

    I use my company debit card for large transactions, but don't want to use it for small transactions due to foreign exchange fees. I have a personal currency fee free credit card that I use for a lot of purchases. I don't have a business euro account.

    I just wondered if I'm missing something obvious - when I was a permie my employer used Concur which made this sort of thing simple - I've been reading about expensify and free agent but I'm not sure if they would make things simper, and if nixon williams would accept them?

    Can anyone offer any advice?

Working...
X