What if you get overpaid?

[d000hg]

I have a client in the US, I got my rate set in £. He sometimes makes payments in $ based on the current exchange rate and this is in the contract as allowed... anyway for one payment he sent a cheque instead of electronic payment. Abbey are claiming it can take a few weeks to clear... when he wrote the cheque the £ was worth about $1.9, if it cleared at current rates I'd end up with £500 more than I billed for.

What should I do? How can I make my books balance? Do I need to make my income match what I bill or is the tax=man not bothered?

[TheBigYinJames]

What should I do? How can I make my books balance? Do I need to make my income match what I bill or is the tax=man not bothered?

Any benefit due to exchange rate fluctuations is equivalent to your company making a speculative investment in the money markets. Any extra over your invoiced amount is counted as investment income and should be handled/taxed as any other investment revenue such as bank interest.

[TheFaQQer]

Any benefit due to exchange rate fluctuations is equivalent to your company making a speculative investment in the money markets. Any extra over your invoiced amount is counted as investment income and should be handled/taxed as any other investment revenue such as bank interest.

That has to be one of the most useful, accurate and helpful answers that I've seen here.

Are you sure you're on the right forum???

[NotAllThere]

It was very lucid wasn't it. I can confirm that this precisely what my accountant does.

[NickNick]

That has to be one of the most useful, accurate and helpful answers that I've seen here.

First time anyone has EVER said that about James.

[TheBigYinJames]

First time anyone has EVER said that about James.

I do have brief moments of lucidity, before lapsing back into nonsense (a.k.a. tpd)