Should I accept payment in EUR or GBP

[NoviceContractor]

Hi All,

I have just got a contract for a client in France. The Agency (based in UK) is insisting that I accept the payments in EUR. I have never accepted payment in EUR earlier and do not know what I am getting into and which currency should I accept for my contract. Is it troublesome to accept payment in EUR or should I insist the contract to be based in GBP only? The agency is using today's exchange rate to agree on daily rate in EUR for the contract.

Can anyone help me decide which currency I should go with.

Thanks

[TheFaQQer]

If the Euro is going to get weaker, then this is a bad move. If the Euro is going to get stronger, then this is a good move.

Don't forget to include the handling charges in your rate as well, unless you have an account that allows Euro payments without a fee.

[stek]

If the Euro is going to get weaker, then this is a bad move. If the Euro is going to get stronger, then this is a good move.

Don't forget to include the handling charges in your rate as well, unless you have an account that allows Euro payments without a fee.

And also somewhere down the line it will need to be converted, unless you keep it in Euros and relocate.

[NoviceContractor]

If the Euro is going to get weaker, then this is a bad move. If the Euro is going to get stronger, then this is a good move.

Don't forget to include the handling charges in your rate as well, unless you have an account that allows Euro payments without a fee.

I do not have EUR account. Do you know how the charges comes up in terms of the rate?

For example, for a contract of EUR 500 are we talking about charges of like 1-2% of the daily rate to convert to GBP so like 5-10 EUR expense on the rate?
Also, how much of a hassle is it to convert the money say on monthly basis once the relevant bank account is open?

I am currently with HSBC on GBP currency. Not sure if they will allow EUR account and what kind of charges they would have. I guess HSBC may not be as competitive in currency conversion but I do not know who would be.

Appreciate your views.

Thanks,
Sunil

[NoviceContractor]

And also somewhere down the line it will need to be converted, unless you keep it in Euros and relocate.

I am not relocating and would intend to convert it on a regular basis. Not sure how much hassle it will be. Any views?

[stek]

I am not relocating and would intend to convert it on a regular basis. Not sure how much hassle it will be. Any views?

It's not the hassle it's the exchange rate and the cost to convert, as Faqqer said.

When I worked in Euroland I think I was charged €25 for the conversion, and converted at not the most favourable exchange rate. If I was on that contract now I'd never survive, the current exchange rate would have killed it for me.

[northernladuk]

Plenty of advice in these threads discussing exactly the same issue...

https://www.google.co.uk/search?q=pa...qfK8LZaaC3qrgG

[stek]

Also you'll need to register for EC sales wrt to VAT, a minor thing but more work. You charge no VAT and quote the agents French VAT number if they are French.

[fidot]

Personally, I'd insist on GBP, which reduces both your risk and hassle factor. It seems odd to me that one UK company (agency) would pay another UK company (YourCo) in EUR.

[NoviceContractor]

Also you'll need to register for EC sales wrt to VAT, a minor thing but more work. You charge no VAT and quote the agents French VAT number if they are French.

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.