Right then.
I have recently returned to the UK and am working through my long established UK Ltd. I have taken on a short contract that will be paid in €, into my personal € account, and then transferred to my companies UK sterling account (this is to allow me to obtain the best possible exchange rate)
I have incurred some expenses, in a mixture of £ and €, these will be billed to the client who will pay them in €.
I have a couple of questions, I will of course have a word with my accountant but I thought I would ask on here to get an idea of what answers I should expect from her.
1. How do I account for the € amounts invoiced and paid in my sterling accounts? I understand I have to convert to sterling at the prevailing exchange rate as defined by HMRC, but how do I account for any differences in the sterling amount invoiced, the sterling amount paid as per HMRC rate and the actual amount that arrives in my companies account?
2. The company will need to reimburse me for out of pocket expenses, however most expenses are denominated in €, how do I go about working out the correct sterling amount to reimburse myself?
Thanks in advance for any help.
I have recently returned to the UK and am working through my long established UK Ltd. I have taken on a short contract that will be paid in €, into my personal € account, and then transferred to my companies UK sterling account (this is to allow me to obtain the best possible exchange rate)
I have incurred some expenses, in a mixture of £ and €, these will be billed to the client who will pay them in €.
I have a couple of questions, I will of course have a word with my accountant but I thought I would ask on here to get an idea of what answers I should expect from her.
1. How do I account for the € amounts invoiced and paid in my sterling accounts? I understand I have to convert to sterling at the prevailing exchange rate as defined by HMRC, but how do I account for any differences in the sterling amount invoiced, the sterling amount paid as per HMRC rate and the actual amount that arrives in my companies account?
2. The company will need to reimburse me for out of pocket expenses, however most expenses are denominated in €, how do I go about working out the correct sterling amount to reimburse myself?
Thanks in advance for any help.
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