Technical Queries - Expenses incurred in another EU country

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Expenses incurred in another EU country

moyo

8 posts

# 77886
Sat 24 Dec 2011 10:30 AM

How do I deal with expenses incurred by two employees who were on a training course in Germany.

nckbooks

328 posts

# 77888
Sat 24 Dec 2011 02:12 PM

Hi Mojo,

You would deal with it on the same way as an expense incurred in UK.
Foreign currency will need to be converted in Sterling GBP(HMRC exchange rate apply) and VAT charged can not be claimed inUK.

Hope this help,

Nathaliexxx

moyo

8 posts

# 77890
Mon 26 Dec 2011 12:47 PM

Thanks Nathalie
Merry Christmas

Maureen

LouP

Member
Practice Licence
128 posts

# 77906
Wed 28 Dec 2011 10:52 AM

Hi - building on this thread, I have a client who travelled to Spain and who bought Euros before leaving - I have the receipt for the purchase. He has also provided me with receipts (in Euros) for his expenses. I was planning on using the rate that he bought the Euro's at to calculate the expenses. Would this be the correct approach??

Thanks

Lou

nckbooks

328 posts

# 77908
Wed 28 Dec 2011 02:43 PM

Hi Lou,

The exchange rate on the receipt can be used for the conversion to GBP. This is a better option if he has purchased from his Business Bank account.The amount will match sum appearing on the Bank statement therefore tie up with Bank reconciliation.

If he has used cash to purchase his foreign currency, the exchange rate applicable is the HMRC rate as at the date of purchase. The difference between HMRC rate and the rate charged on receipt will be accounted for as a cost= exchange rate cost.

Hope this help,

Nathaliexxx

LouP

Member
Practice Licence
128 posts

# 77909
Wed 28 Dec 2011 03:24 PM

Thanks Natalie - only have cash receipts so will use http://www.hmrc.gov.uk/exrate/european-union.htm (presume I use the average rather than looking for the specific day rate.

Lou

nckbooks

328 posts

# 77910
Wed 28 Dec 2011 03:55 PM

LouPsaid:

“Thanks Natalie - only have cash receipts so will use http://www.hmrc.gov.uk/exrate/european-union.htm (presume I use the average rather than looking for the specific day rate.

Lou ”

Hi Lou,

Try to dig deeper searching for daily rate on the HMRC site.

I used to have a link of daily rate. If you can not find the daily one get the weekly average instead of monthly.
We just need to be as accurate as possible. sorry could not provide you with a link.

Nathaliexxx