Does anyone know what the exchange rate for 2018 is ? I have heard 0.89 but that can’t be right.
Ok, thanks, that answers my question. Obviously reversal of 0.89 was rubbish.
Yes, needs to to 4 decimal places really.
Apparantly, when income has been received in the currency of a non-Euro area country, it must be converted into euros at the exchange rate on the receipt date.
By convention however tax offices allow use of an average rate for the year.
Last year I filled in a tax return, and my £ income I converted at the Rate in December. The tax official didn’t really care, just so long as it seemed “reasonable” to her. Once the numbers get into teh system, they’re accepted, and any slight roundings are ignorable, I think.
Based on a ministerial response to an MP’s question a few years ago take the Banque de France month-end rates for December 31 of the tax year in question and the previous year and averaging them.
December 2018 : 0.8945 (1.1179)
December 2017 : 0.8872 (1.1271)
The average would therefore be 0.8908 (1.1225)
Unless you’re talking of a lot of money there’s not a great deal init. The overall UK pension (less than £10000 in a full year at the moment) the difference from high to low is only about €60.
Hope this helps.
Thank you. I settled on 0.89 and ignored the fractions. This comes out at 1.11 and a few digits. I don’t think the tax office has either the time or the inclination to work out every single return to the last cent. I’ve never had any comeback in the last 9 years. Anyway, that part of my income which is paid into a UK bank is actually very small - the larger part is paid into my French account in, of course, euros. I always make a point of declaring everything. I have friends who have opted not to declare their UK income. This decision may come back to bite them on the bum when it comes to establishing income, come Brexit day. And, of course, if the tax office ever finds out …
That’s one way, of course but using the INSEE rate or the rate published by the ECB are annualised anyway (if you take the closing rate at the last trading day in December of the year in view) so there is no need to average in the way you suggest.