Tax Return. Working Online. Paypal Account. $s and £s

PasturesNew

This bit is doing my head in

I have a paypal account. Dribs and drabs of income drop into it, in $s and in £s. Occasionally I buy things, in $s and in £s and if they take paypal, then that's how I pay.

Throughout the year, if I spot Paypal has quite a few quid in it, I'll click to transfer that to my bank account.

There are also, sometimes (but not always), Paypal fees.

So, how to represent this in the tax form. At the moment I have:

£479.04 income (after fees of £10.35 on 4/20 transactions)
$1080.64 income (after fees of $14.60 on 15/27 transactions)

£110.99 expenses (no fees)
$278.45 expenses (no fees)

£86.48 transferred from my bank account to Paypal (automatically taken if I don't have enough in Paypal when buying stuff)
£2881.41 transferred into my bank account from Paypal (when I have looked and thought there's a bit much in there).

How the heck do I represent this in my tax return under self-employment for:

Income
Expenses

Low amounts, so just the two figures required.

The spot price for exchange on 31.03.07 was 1.9614

Can anybody come up with the two figures for income and expenses?

Cook_County

Because of low amounts the concessionary cash basis would be OK. You use standard accounting rules to prepare accounts for whatever accounting period you use; ie sales less cost of sales equals gross profits. You then deduct expenses and capital allowances (eg use of computer) and add back any disallowable expenses. Expenses presumably should include use of home at £2 a week.

It is convention to use average exchange rates rather than spot in these situations.

PasturesNew

Cook_County wrote: »

Because of low amounts the concessionary cash basis would be OK. You use standard accounting rules to prepare accounts for whatever accounting period you use; ie sales less cost of sales equals gross profits. You then deduct expenses and capital allowances (eg use of computer) and add back any disallowable expenses. Expenses presumably should include use of home at £2 a week.

It is convention to use average exchange rates rather than spot in these situations.

Thanks for answering, I gave the spot price as that was one on the hmrc site. Any clues where I could get the average exchange rate from?

Finella_2

Don't know much about exchange rates but hubby uses this:

http://www.xe.com/

Maybe it will be of some help.