This category includes any differences earned or paid between when you input your invoices to when you either pay or get paid for them.

What's included

  • An FX gain will arise when the exchange rate changes in a favourable direction between the date you raise the invoice and the date your client pays you.

  • An FX loss will arise when the exchange rate changes in an unfavourable direction between the date you raise the invoice and the date your client pays you.

  • A gain or loss will be unrealised until payment is received. When paid the unrealised gains or losses will crystallise and become realised.

What's not included

Unrealised gains or losses will not appear in Ember until you are paid for the invoice you have outstanding. At which point the gain or loss will become realised.

How is it taxed?

Permissible exchange rates include the average exchange rate for the year, or if for a single transaction the spot rate for that day, or if the amount to be translated relates to more than one transaction, a rate of exchange derived on a just and reasonable basis from appropriate spot rates of exchange for those transactions. (CTA 2010 Pt2 Ch4 s11).

Tax tips

For your tax return all numbers must be reported in £ sterling.

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