Help with calculation on speradsheet

peigi_2

I am trying to help a friend that is over 65 with a tax return, he is still working part time 16hrs a week but has money in tow different savings account in Euros not in the UK The banks where his saving is calculate from January to January. The UK is from April to April. The interest paid in Euros is only payable for working days not week ends on the central bank website.

Can any one tell me as simple as possible how I can do this on excel spreadsheet to get the correct amount of interest that he should pay the tax man.:eek:

zygurat789

You only declare the interest actually received between 6 April and the next 5 April

peigi_2

thanks but I need to know the formula on how to convert euro into sterling for the taxman. Can it be done on a spreadsheet or does he need to go to an accountant for this.

Mahmood_Reza

You do not need an accountant to do the calculations. Formula = Euro ÷ Exchange rate. Use the rates as published by HMRC - for income items, such as interest average rates are normal.

peigi_2

Thanks Mahmmod, I have done example if this the correct way of doing it.

http://i887.photobucket.com/albums/ac76/peigi100/ML.jpg

Mahmood_Reza

peigi wrote: »

Thanks Mahmmod, I have done example if this the correct way of doing it.

http://i887.photobucket.com/albums/ac76/peigi100/ML.jpg

Just picked up your post, seems ok but a little confusing to me (long day!). I have replicated a format below

Euro Interest conversion
DateEuro Exchange SterlingInterestrate (a)£06-Apr-10120.00 €0.831£99.7205-Jun-10240.00 €0.831£199.4409-Sep-10100.00 €0.831£83.10460.00 €£382.26Notesa. Source = HMRC (example)b. Sterling = Euro interest × Exchange ratec. Use average rate or spot rate

Mahmood_Reza

Euro Interest conversion
Date Euro Exchange Sterling
Interest rate (a) £
06-Apr-10 Euros 120.00 rate of exchange € 0.831 sterling - £99.72
05-Jun-10 Euros 240.00 rate of exchange € 0.831 sterling £199.44
09-Sep-10 Euros 100.00 rate of exchange €0.831 sterling £83.10
Total 460.00 £382.26
Notes
a. Source = HMRC (example)
b. Sterling = Euro interest × Exchange rate (B5 × C5)

c. Use average rate or spot rate

peigi_2

Hi Mahmood, thanks for reply, the figures are just to see if the way I am doing the forumla correctly. I will look up the spot rate on HMRC website later and hopfull I can make sense of it.

Is it best to do it quartly, I was hoping just to do from April to April, when I get the total amount of interest togehter. And hopefull the HMRC will have a spot rate for the year, or is that just wisheful thinking!!

I will do another post about to over the weekend.

Mahmood_Reza

April to April using average rates should be fine (it ties in with the accounting treatment)

peigi_2

Jimmo - I converted the euro rate for £1 and interest is paid only for 257 days for the year, I had to average it for 365 day to comply with HMRC days in the UK.

Does that make sense. Wil do more on it over the weekend.

peigi_2

You are right jimmo,I think I have been making it more complicated than necessary. However, I am more confused now as I looked at the Spot Rate for 09/10 on HMRC website and as you can see it has too lots of spot rates from 31/03/09 and the same for 32/12/09 and then again for 31/03/10. All have slightly different exchange rate which rate do I use. Any help with this would be very much appreciated.



[FONT=&quot]Also, I have downloaded a copy of the form for 09/10 and it has nothing on there about foreign income where do I put that on the form as I would first like the return on a physically form and then do it online when I know it is correct. [/FONT]