Foreign currency reporting in Limited Co. tax return

Accounting
1

Looking at using the HMRC online service to file the company tax return, the notes at Check if you can use the HMRC Corporation Tax online filing service - GOV.UK
state that:

You also cannot use the service if your company needs to report:

  • foreign currency transactions

Can anyone tell me where foreign currency transactions need to be reported? I can’t find any reference to reporting these in either the CT600 form or in the “How to complete a Company Tax Return” guide at How to complete a Company Tax Return - GOV.UK

Our accounts are all in GBP and we are a micro-entity company but do have sales and purchases (services only, no goods) to/from other countries in USD and EUR. All are converted to GBP, we do not have any currency bank accounts or keep any funds in other currencies.

Thank you

2

Hi @Silverfrost

You may be best to speak to your accountant about this to make sure you are complying correctly

3

Thanks Beth - we don’t have an accountant. I just wanted to know if anyone knows where on the tax return this has to be reported, rather than any specific advice, as I can’t find it anywhere.

4

I think you’ve been had by hmrc if im honest.

I don’t use their website, I use paid for software, none of which needs me to report foreign transactions seperately

All that matters is the exchange difference between the currency and gbp is reported as a gain or loss and treated accordingly.

My advise would be to look at software. There are some cheap ones out there. Tax filer I think is quite reasonable for one tax return each year.

5

Thank you @Paul_Courtier - you have confirmed what I thought after reading through all of the CT600 form and notes in that there is no reporting of the foreign currency transactions.

I have been looking at an alternative to filing using HMRC software - unfortunately, most seem to be aimed at accountants who need to file for several companies (including Tax Filer - aimed at 10 clients). Andica seems to be the only one I can find for single submissions but they don’t include micro entity accounts so I’m not sure if it is suitable. I’ll keep looking.

6

Do you pay those invoices in currency or do you pay the GBP equivalent?
You don’t need to specifically report sales and purchase overseas if you are essentially converting everything to Sterling.

I think what HMRC may mean is where you have a currency bank account and use that for overseas trading, or where there is an overseas entity.

I think as a micro company you should be fine to use HMRC’s online filing.

7

I have a similar situation and simply enter everything in my accounts as the actual GBP received. There is no need to complicate things by reporting foreign currencies. I use the hmrc online service for creating and submitting my accounts with no issues.

8

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