paying tax on payments - may be in wrong place.

Seanymph · 9 January 2019 at 5:52PM

I had taken a year or so out of working (no benefits) - and had not registered as self employed, because I wasn't earning at all.

Part of the plan was to study, with a view to picking up some writing work from home.

I have picked up a little bit of writing which was my intention - but not a lot.

From April 2019 I will I think register as self employed alongside some part time PAYE work (started one job in November, got offered a second today) - having read the HMRC guidelines (anything under £1,000 is a hobby) I am not troubled this year (2018-19), I've been paid under 200 dollars in the entire year, and my expenses are more than that, if I declared it I would be making a loss - I am also so far within my tax allowance that it wouldn't be taxable anyway.

But, in April, I intend to start looking for more clients, and actually kicking into gear. I have proved to myself that its possible, and I am rapidly learning how to find clients and receiving offers (I'm turning them down).

However - now the question (thanks for getting this far). I am paid in dollars, into paypal. I haven't withdrawn any, because 200 dollars over six months has just paid for items on ebay to be honest, but I guess if I get any sort of sum I'd have to take it out.

What do I declare? Does anyone know how I value it? Do I declare the value I get when I transfer it out?

I'm sort of struggling with how I would set it up - consequently all thoughts gratefully received.

00ec25 · 9 January 2019 at 7:51PM

you will be self employed

you declare your income and deduct your expenses
you do not base it on when you took money out of the bank,

there are many sources of info on self employment, time for you to read some:

https://www.gov.uk/topic/business-tax/self-employed

https://www.simplybusiness.co.uk/knowledge/articles/2016/12/going-self-employed-in-the-UK-a-self-employment-guide-to-get-started/

Seanymph · 9 January 2019 at 9:07PM

I have been self employed, and completed self assessments. I've just never done it in dollars. It's the value I was querying, not the date.

If I can it out then it will convert to gbp. Do I declared the sterling value even though I am paid in dollars?

I can't see that it's foreign income, but its in a foreign currency.

00ec25 · 9 January 2019 at 9:47PM

you convert to GBP at the spot rate applicable to the date you earned the income, not the date you cashed out your foreign currency. It is no different to the way you record a sales invoice in GBP, for accounts purposes you earned the income on the date of the sales invoice, not the date the customer pays your invoice.

yes you will therefore have currency gains and losses. You can, if you wish, instead use the HMRC published monthly average rather than spot rates (which they do not publish, but expect you to use one of the many online sources who do)

paying tax on payments - may be in wrong place.

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