UK bank account
#1
Forum Regular
Thread Starter
Joined: Nov 2011
Posts: 62
UK bank account
Hey y'all. I have opened up a US business account and I still have my UK Natwest open. There is about £7,000 in that, some of my UK clients pay me in there. Do I just report this normally when it comes to taxes? I would normally ask my accountant but he's away!
Thanks!
Thanks!
#2
Re: UK bank account
"Normally"? ..... If it is income then yes, you report it, converted the prevailing exchange rate. If you have that data for the date of receipt, you can convert each transaction, but it is also OK to use an average rate if you received multiple payments over a period of time.
#3
Forum Regular
Thread Starter
Joined: Nov 2011
Posts: 62
Re: UK bank account
"Normally"? ..... If it is income then yes, you report it, converted the prevailing exchange rate. If you have that data for the date of receipt, you can convert each transaction, but it is also OK to use an average rate if you received multiple payments over a period of time.
Cheers!
#4
Forum Regular
Thread Starter
Joined: Nov 2011
Posts: 62
Re: UK bank account
But thanks Pulaski. I've been keeping track of exchange rates at the time of payment into my UK account so that's good news!
#5
Re: UK bank account
"Normally" as in, "do I declare it in a normal manner". I have every intention of declaring my income. I just wanted to know if I had to do anything to let them know I have an overseas account or whether I can just tell them at tax time. Also wondered if my account in the UK would concern anybody there! I didn't tell Natwest I was leaving, although I did let the HMRC know.
Cheers!
Cheers!
#6
Re: UK bank account
With that amount you will need to fill out a FBAR form. For UK income into my Natwest account for the FBAR I report the highest balance in the account in the year. For tax value the IRS publish the average exchange rate for the tax year. I use that for the tax return. This figure is usually published on the IRS web site late February to early March time.
#7
Vendor
Joined: Sep 2013
Location: London
Posts: 22
Re: UK bank account
By the way, here at Excel Currencies, we are the new currency partners of British Expats and we now have special offers on for any British expats members and British expats moderators that transfer funds from one currency to another.