Hi @JKRF
While I’m not able to comment on the tax side of things (your accountant may be best place to help here), I’d like to touch on the fee side of things.
TransferWise is quite similar to other merchant accounts in this respect, in that they take a fee before giving you the final amount. What you actually have, is 3 transactions:
- Money out of the original account (in your case, the GBP account)
- Money out for the fee to the service provider
- Money into the destination account (in your case, the USD account)
As an example, if you transfer £100.00 from the GBP account and get charged a £1 fee (so £99 is converted into approx. $132.86), you’d have something like this:
- £99.00 out of the GBP account tagged as a transfer to the USD account
- £1.00 out of the GBP account tagged as a payment to TransferWise
- $132.86 into the USD account as the matching transaction to the £99 out
With any multi-currency items in your account, we store the corresponding GBP value for things like your balance sheet report, so things like your VAT return would use the GBP values.
You may also need to adjust your non-GBP accounts for any currency gains/losses. There’s more detail on this here: Invoicing in foreign currencies
Hope that helps 