Recommened business accounts (UK based but euros)

[stek]

Recommened business accounts (UK based but euros)

Alas it is not free any more. Nationwide debit cards have a currency fee on each transaction, and a separate withdrawal fee for euro cash from an ATM. They are still better than any other High St bank, but no longer free.

Nationwide credit cards are still free for euro purchases, though more expensive for ATM withdrawals than the debit cards.

I usually go with the easy way: get euro invoices paid into sterling business account. Use Nationwide credit card for purchases, Nationwide debit card for cash. Or even simpler, use company visa card for purchases and stop worrying about it.

Note that your invoices must have a sterling amount on them, you are not allowed to account in euros. So you bill in euros, and also list the sterling amount on the invoice. The client pays euros into your business account, they convert to sterling, not of course arriving at the same figure as you did. No sweat, the difference will be accounted for smoothly as exchange gains/losses.

There is no official exchange rate for your invoice. I use Bank of England "XUDLERS" rate (google it) but I don't think anybody cares because it will all come out in the wash.

It's free with a Flex Select current account - well tenner a month but still a saving for me plus there's loads of other benefits

[Ignis Fatuus]

Agreed. I understood the rules are that you need to use a consistent method of calculating the sterling equiv on invoices. I use oanda.com.

Uh-huh. when I started doing it, I felt that the Bank of England was a respectable institution. I am less sure now.

[psychocandy]

Not as far as I can tell...only very slightly less than the published commercial rate of the day (typically around 50-75 cents worse off).

Maybe. Cater Allens rate today is 0.8395, I can get 0.85 on Currency Fair. So for 10,000E today the difference would be £105.

Sometimes the amounts are more than 10K so it does make a difference. Up to a day rate just for a small bit of admin transferring money over. (although like I said it currently costs me 29E to transfer and £3 to transfer back).

[psychocandy]

I use my bank commercial rate on date of invoice and print a PDF of the web page for my records. It doesn't really matter which one you use, I would just recommend retaining proof should Hector ever want to query it, but that's probably a belt and braces approach to be honest.

Agreed. I understood the rules are that you need to use a consistent method of calculating the sterling equiv on invoices. I use oanda.com.

[captainham]

There is no official exchange rate for your invoice. I use Bank of England "XUDLERS" rate (google it) but I don't think anybody cares because it will all come out in the wash.

I use my bank commercial rate on date of invoice and print a PDF of the web page for my records. It doesn't really matter which one you use, I would just recommend retaining proof should Hector ever want to query it, but that's probably a belt and braces approach to be honest.

[Ignis Fatuus]

Me too, your gonna get hit somewhere along the line, Nationwide is free withdrawal in Europe for personal account so I use that and claim expenses off my ltd as normal.

Alas it is not free any more. Nationwide debit cards have a currency fee on each transaction, and a separate withdrawal fee for euro cash from an ATM. They are still better than any other High St bank, but no longer free.

Nationwide credit cards are still free for euro purchases, though more expensive for ATM withdrawals than the debit cards.

I usually go with the easy way: get euro invoices paid into sterling business account. Use Nationwide credit card for purchases, Nationwide debit card for cash. Or even simpler, use company visa card for purchases and stop worrying about it.

Note that your invoices must have a sterling amount on them, you are not allowed to account in euros. So you bill in euros, and also list the sterling amount on the invoice. The client pays euros into your business account, they convert to sterling, not of course arriving at the same figure as you did. No sweat, the difference will be accounted for smoothly as exchange gains/losses.

There is no official exchange rate for your invoice. I use Bank of England "XUDLERS" rate (google it) but I don't think anybody cares because it will all come out in the wash.

[captainham]

Do you? Surely then you get charged a fee for a non-sterling payment and then a crap exchange rate.

I thought of doing it that way but it would have wasted a few £100....

Not as far as I can tell...only very slightly less than the published commercial rate of the day (typically around 50-75 cents worse off).

[psychocandy]

What about paying salary dividend etc, from euro account if that's the plan? Sooner or later it will have to go into a Sterling account or get hit from the ATM.

Unless your just gonna stash it....

Probably doable if you spend in euros.... I dont. I need pounds. Even take english ones.... :-)

[psychocandy]

Me too, your gonna get hit somewhere along the line, Nationwide is free withdrawal in Europe for personal account so I use that and claim expenses off my ltd as normal.

At the very least its worth getting a linked euro account. Still at the mercy of banks rate when you move from euro to sterling account but at least you dont get banged with £30 or so charge when its paid into euro account rather than sterling.

Not exactly hard to just do an online transfer into sterling account.

Admittedly, what I do is slightly complex. I transfer out of euro account into currency fair account. Then I match rates on there when I feel like, then transfer the sterling back into sterling account (costs £3).

[stek]

Recommened business accounts (UK based but euros)

What about paying salary dividend etc, from euro account if that's the plan? Sooner or later it will have to go into a Sterling account or get hit from the ATM.

Unless your just gonna stash it....

[psychocandy]

Couldn't be faffed with all that, I just get my Euro invoices paid directly into my Sterling account. Commercial rate is better than tourist rate at least, with Natwest anyway.

Do you? Surely then you get charged a fee for a non-sterling payment and then a crap exchange rate.

I thought of doing it that way but it would have wasted a few £100....

[stek]

Recommened business accounts (UK based but euros)

Couldn't be faffed with all that, I just get my Euro invoices paid directly into my Sterling account. Commercial rate is better than tourist rate at least, with Natwest anyway.

Me too, your gonna get hit somewhere along the line, Nationwide is free withdrawal in Europe for personal account so I use that and claim expenses off my ltd as normal.

[captainham]

Couldn't be faffed with all that, I just get my Euro invoices paid directly into my Sterling account. Commercial rate is better than tourist rate at least, with Natwest anyway.

[psychocandy]

OK. Actually need two accounts. One in sterling, one in euros.

Currently with Cater Allen who charge me 8E to receive a euro payment into euro account. I could transfer then into sterling account but the rate is awful.

I used currency fair to do the exchange and then transfer back into sterling (at least this is free). But its 29E to transfer out of euro account to currencyfair.

I'm sure I can get cheaper. Looking into HSBC. Anyone else do a similar thing?

(Edit - Although just spoke to HSBC rep on online chat and they were a bit clueless about euro accounts)