Foreign currency transactions and HMRC online filing

[Bumbling Amateur]

My UK ltd company occasionally invoices in foreign currency as well as making expense payments in foreign currency whilst working on overseas projects.

According to https://www.gov.uk/guidance/corporation-tax-use-hmrcs-free-filing-software I cannot use HMRC's online service to file my CT600 or company accounts if I need to report foreign currency transactions. Does this exclude me from using the HMRC online service? I was under the impression that I would simply convert everything in my accounts to sterling and go from there. I'm just not sure if 'foreign currency transactions' apply to my situation.

 

[LPB 123]

Just convert it:

[Withdrawn] Exchange rates from HMRC in CSV and XML format

Check the foreign exchange monthly rates, yearly averages, spot rates and weekly amendments to rates (from HMRC in CSV and XML format).

www.gov.uk

 

[Truemanbrown]

My UK ltd company occasionally invoices in foreign currency as well as making expense payments in foreign currency whilst working on overseas projects.

According to https://www.gov.uk/guidance/corporation-tax-use-hmrcs-free-filing-software I cannot use HMRC's online service to file my CT600 or company accounts if I need to report foreign currency transactions. Does this exclude me from using the HMRC online service? I was under the impression that I would simply convert everything in my accounts to sterling and go from there. I'm just not sure if 'foreign currency transactions' apply to my situation.

Can I ask - How are dealing with foreign currency transactions at the moment?

 

[MikeJ]

I don't think you can, no. ??

 

[Bumbling Amateur]

Can I ask - How are dealing with foreign currency transactions at the moment?

I convert all foreign currency transactions to sterling (on the transaction date or settlement date).

 

[Bumbling Amateur]

My UK ltd company occasionally invoices in foreign currency as well as making expense payments in foreign currency whilst working on overseas projects.

According to https://www.gov.uk/guidance/corporation-tax-use-hmrcs-free-filing-software I cannot use HMRC's online service to file my CT600 or company accounts if I need to report foreign currency transactions. Does this exclude me from using the HMRC online service? I was under the impression that I would simply convert everything in my accounts to sterling and go from there. I'm just not sure if 'foreign currency transactions' apply to my situation.

I've done some reading on the HMRC website and I think I'm confusing myself.

I thought the need to report foreign currency transactions would exclude me from using the HMRC Corporation Tax online filing system however I don't actually need to report foreign currency transactions because I have converted them all to sterling as is my right as a micro entity in accordance with Financial Reporting Standards for Smaller Entities which, I understand, is essentially the same as the requirements of SSAP 20.

Anyone care to endorse or disagree with my latest thoughts?

 

[Bumbling Amateur]

I don't think you can, no. ??

why?

 

[LPB 123]

I've done some reading on the HMRC website and I think I'm confusing myself.

I thought the need to report foreign currency transactions would exclude me from using the HMRC Corporation Tax online filing system however I don't actually need to report foreign currency transactions because I have converted them all to sterling as is my right as a micro entity in accordance with Financial Reporting Standards for Smaller Entities which, I understand, is essentially the same as the requirements of SSAP 20.

Anyone care to endorse or disagree with my latest thoughts?

Yes, that's correct.

 

[UK Contractor Accountant]

You are supposed to be recognising exchange gains & losses which is why you cant use the HMRC online filing.

You convert into sterling at the date of transaction and then also convert on the date when payment is made or received. This will generate FX gains/losses linked the currency exchange rate movement during the intervening period.