Invoicing a client in Poland from the UK a different currency
Thread poster: Aleksandra Karpiuk, AITI

Aleksandra Karpiuk, AITI  Identity Verified
United Kingdom
Local time: 01:42
Polish to English
+ ...
Sep 11, 2014

Hello all,

I have recently registered as self-employed in the UK and I am still new to the invoicing thing. So far I had no problem sending invoices to my UK clients, but today I have completed a translation job for an agency in Poland. We agreed on payment in PLN and due to bank fees and all this transfer nonsense I decided to give them my Polish bank details - seems like the easiest way for them and for me. But now I'm starting to have second thoughts - how HMRC will look at this when suddeny they see my Polish bank account on the invoice? Am I even allowed to do something like this? (and how will I indicate how much I earned in GBP for this particular job I got paid in PLN)?

I would appreciate your help.


 

Charlotte Farrell  Identity Verified
United Kingdom
Local time: 01:42
Member (2013)
German to English
+ ...
Should be no problem Sep 11, 2014

When you fill in your tax return, there's an option to enter foreign income. I heard from a friend of mine that has an accountant that apparently you can just enter it at an exchange rate you can justify and it's all fineicon_smile.gif You could also call HMRC and ask them how best to enter this in your tax return - they're usually very helpful and they're the perfect people to ask.

 

Sheila Wilson  Identity Verified
Spain
Local time: 01:42
Member (2007)
English
+ ...
Just don't keep any secrets Sep 11, 2014

No problem. Many of us have multiple accounts in different countries and accept various currencies. You may want to ask for professional help in preparing your first tax return.

 

Thomas T. Frost  Identity Verified
Member (2014)
Danish to English
+ ...
No problem Sep 11, 2014

You are entitled to use as many banks accounts you want, and where you want, so long as you declare what needs to be declared.

I very much doubt this should be declared as foreign income, though, but an accountant or the Inland Revenue can tell you that better than I can, as Charlotte said. Where the bank account is would seem quite irrelevant for that question.

You can use the exchange rate on http://www.ecb.europa.eu/stats/exchange/eurofxref/html/index.en.html (The European Central Bank) on the date the amount was credited to your account to convert the amount into pounds so you know how much to declare. They have historical exchange rates back to the start of the euro.


 

Aleksandra Karpiuk, AITI  Identity Verified
United Kingdom
Local time: 01:42
Polish to English
+ ...
TOPIC STARTER
Thank you! Sep 15, 2014

Thank you all for your comments and advice. I invoiced the agency, but I will definitely need help with my first declaration, as Sheila said.

 

Thomas Pfann  Identity Verified
United Kingdom
Local time: 01:42
Member (2006)
English to German
+ ...
It's not "Foreign Income" Sep 15, 2014

Charlotte Farrell wrote:

When you fill in your tax return, there's an option to enter foreign income.


Careful, though. This is not foreign income. The foreing income section is mainly for pension, investment and property income from overseas, but not for income from employment or freelance work - see HMRC's definition here: http://www.hmrc.gov.uk/manuals/tctmanual/tctm04007.htm

I agree with everything else said so far, though. You just add it to all your other income and it's mainly up to you which exchange rate you use to convert the amount - as long as what you do makes sense.


 

Tom in London
United Kingdom
Local time: 01:42
Member (2008)
Italian to English
Correct Sep 15, 2014

Thomas Pfann wrote:

Careful, though. This is not foreign income.


Correct. This is payment for a service that you provided in the UK. Therefore it is income that you earned in the UK.


 


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Invoicing a client in Poland from the UK a different currency

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