EXCHANGE RATE FOR YEARLY TAXES.

Hi,

can anyone tell me what rate the tax office (hacienda)

will be using this year so I can work out how much tax I will owe

them when my tax forms have to be submitted by the 30th june

I have my pension paid into my english bank account so have to.

convert yearly amount paid from pounds to euros.

I have a note from an earlier posting that the rate used is that for 31 December 2013 which was £1 = €1.1956.

If you are going to submit your own tax return be sure that you know all the ins and outs.Without knowing your circumstances, I suggest you read as many posting on here as you can find. I find it quite reasonable to use a qualified Gestor to do mine, and I am a retired UK Inland Revenue man! Google "Spain accountants" for info.

I use the actual rate my UK income was paid. Each month I make a note on a spreadsheet what rate was applied and simply add it all up. That way your fire proof.  

Mickey

That is true if one gets the pension paid direct into your bank account but the OP says that he holds it in UK until he draws it, so there is no attachment to the rate of payment. It may be acceptable to Hacienda, if lucky, but there could be an attack of swings and roundabouts!

Mmmm, doing it that way it must increase the overhead costs of using Euros over the period of a year depending if they live in Spain. Methinks the OP needs financial advice..

The rate Hacienda use it that at midnight on 31st December of the tax year, so the next return will be for income in 2013, so midnight 31.12.13.  I think that was 1.20 euro to pound.

My OAP is paid directly into my Spanish bank,  4 weekly, so I just add up the total euros for the year (including WFA and Christmas Bonus, both are taxable in Spain).   If the UK pension, or any other income, diviidends, interest etc,.  is paid into a UK  bank, then the annual rate is applied to the whole amount paid in over the year, regardless of the rate when it was deposited.

If you submit  your own return you can use whatever rate you want, because its a self assessment process, BUT you have to justify it if you are required to provide supporting evidence. Personally, I use the ECB daily euro rate on the day of receipt, as this is the published going back to 1999.

The average rate for 2013 (using the ECB rates) was €1.1777. The rate on the 31st December was 1.1995.

thanks everyone for replies.

i do actually use a gestor but I like to know

in advance an idea what I owe (if any) and I

work it out myself beforehand so i am

prepared.