Bank's bad exchange rate - allowable as business cost?

Discussion in 'Accounts & Finance' started by JamHan, Apr 15, 2019.

  1. JamHan

    JamHan UKBF Newcomer Free Member

    2 0
    Our bank gives us a terrible rate to transfer between USD currency account and GBP current account.
    Is the difference an allowable business cost, such as a Bank Charge or Bank Fee?
    We're losing a sizeable amount of value each time, and would like to be able to write it off against profits if possible?

    As an absurd example - if I were to transfer $1000 USD and the bank gives me £10 GBP, when it should be more like £700, would the £690 count as a business cost?

    Thank you!
     
    Last edited: Apr 15, 2019
    Posted: Apr 15, 2019 By: JamHan Member since: Apr 15, 2019
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    13,174 1,441
    If you get a terrible rate then change to someone with a better rate.
     
    Posted: Apr 15, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. Scalloway

    Scalloway UKBF Legend Free Member

    14,605 3,121
    Yes
     
    Posted: Apr 15, 2019 By: Scalloway Member since: Jun 6, 2010
    #3
  4. JamHan

    JamHan UKBF Newcomer Free Member

    2 0
    Thanks - is this a deductible against Corporation Tax, so a pre-profit expense then?
     
    Posted: Apr 15, 2019 By: JamHan Member since: Apr 15, 2019
    #4
  5. Scalloway

    Scalloway UKBF Legend Free Member

    14,605 3,121
    Yes it is tax deductible.
     
    Posted: Apr 16, 2019 By: Scalloway Member since: Jun 6, 2010
    #5
  6. CHUKTC

    CHUKTC UKBF Contributor Free Member

    63 10
    If you exchange a lot of money I would seriously look for another provider. The main stream banks are all terrible at this and very expensive. There are many very reliable better options out there.
     
    Posted: Apr 17, 2019 at 11:18 AM By: CHUKTC Member since: Jan 2, 2019
    #6
  7. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

    1,028 215
    Yes and it's generally recorded in your books as a realised currency gain/loss.
     
    Posted: Apr 17, 2019 at 3:34 PM By: TheCyclingProgrammer Member since: Jul 15, 2014
    #7