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Where Taxpayers and Advisers Meet
Getting paid in HKD, declare in GBP?
I am currently working for a Hong Kong company for whom I am technically self-employed in the UK, but my agreement with the HK company is that they pay me a flat rate agreed in HKD. Historically they have been paying me by bank transfer into my UK account in GBP. However for a number of reasons it would be beneficial if I could be paid in HKD instead and maintain the HKD balance in a UK account. Is this feasible? And what sort of challenges would I face when declaring my earnings, I suppose I would need to apply an exchange rate at some point? Thanks for any advice!
Re: Getting paid in HKD, declare in GBP?
There's no real problem. Many importers/exporters maintain accounts in different currencies.
You have to apply an exchange rate to the income. Normally this is done at the date of invoice then again at the date of payment with any difference being allocated to an "exchange rate gain/loss" account. The source of the exchange rate applied must be consistent and reasonable. HMRC publish lists of exchange rates but we use www.oanda.com as a consistent source.
You have to apply an exchange rate to the income. Normally this is done at the date of invoice then again at the date of payment with any difference being allocated to an "exchange rate gain/loss" account. The source of the exchange rate applied must be consistent and reasonable. HMRC publish lists of exchange rates but we use www.oanda.com as a consistent source.
