Exchange Rate for Tax Returns

[kansas]

I popped in to the Tax Office to find out the sterling exchange rate to use for the 2017 Tax Return. There was no notice on the board and staff told us that they no longer did this and we should ask at a bank.

We went to BOC and were told that they have no mechanism for giving an average exchange rate for the year and can only only advise the exchange rate for any given date.

Can anyone help?

Thanks

[kansas]

Thanks, Hudswell

Thank goodness Currency Fair offer a transaction history. It only took a couple of minutes to calculate "our" exchange rate for 2017.

[exodus]

I popped in to the Tax Office to find out the sterling exchange rate to use for the 2017 Tax Return. There was no notice on the board and staff told us that they no longer did this and we should ask at a bank.

We went to BOC and were told that they have no mechanism for giving an average exchange rate for the year and can only only advise the exchange rate for any given date.

Can anyone help?

Thanks

Our British Expat neighbour was told by the Limassol tax office to use £1 = €1.123
Amos.

[J B]

HMRC give the rate for us UK tax payers ... is that a good guide?

https://www.gov.uk/government/publicati ... 17-monthly

[PaphosAL]

In Cyprus, if the taxman and banks are no longer providing accurate average Forex rates for £ to € conversions, then I would be cheeky...

Choose last year's monthly or daily snap rate that is best for your conversion, use that, then wait for the Cy taxman to whinge about it!

[trevnhil]

And does it really matter how accurate you are with the conversion. You only put the Euro figure, it is not checked against the UK pension for example..

[Poppy]

Due to the very good exchange rates in 2015/2016 I realised I would be liable for CY tax for the first time in 2016 so I was recommended to use a certain accountant.I will not name them but they saved me quite a lot by shall we call it very creative accounting and by using their own version of the exchange rate which was far lower than the one the tax office were stating.I was advised that they were never checked and even in the very unlikely chance that they were to just plead ignorance.

I have to say that to my shame I went along with it although I was not comfortable and that the same accountant did give me some good advice re reclaiming defence tax for my husband who should only have been paying at the lower amount.

[Mark]

I have paid tax on my pensions for some years now, and allways use the rate published in the tax office.

HMRC send the Cypriot tax authorities full detail of my pensions. They really are on the ball in Cyprus, and will pursue you for any underpaid amounts, with interest added.

Best to stick to the official rates!

It is to early for the tax office to publish 2017 rates. You reconcile any under or overpaid amount mid year, prior to paying the first half of the 2018 return.

If you have not paid for 2017, you should have done so by December 2017 and will face a penalty, I think at 9%.

[exodus]

I have paid tax on my pensions for some years now, and allways use the rate published in the tax office.

HMRC send the Cypriot tax authorities full detail of my pensions. They really are on the ball in Cyprus, and will pursue you for any underpaid amounts, with interest added.

Best to stick to the official rates!

It is to early for the tax office to publish 2017 rates. You reconcile any under or overpaid amount mid year, prior to paying the first half of the 2018 return.

If you have not paid for 2017, you should have done so by December 2017 and will face a penalty, I think at 9%.

The problem this time, Mark, is they have not published the rate for 2017 at some Tax Offices!
At Limassol though they advised my neighbour to use £1=€1.123
Amos.

[Mark]

You are correct Amos.

That is why you pay for the current tax year based on what the estimated rate is.
The reason being you pay for the current year prior to year end.(even if only by a couple of days)
This is reconciled the following year.

Some people may be unaware that estimated tax due for 2017 must be paid prior to year end 2017.

[Mark]

I would add that the Cypriots have got tabs on everyone.

Your alien slip, tax identification number, driving licence and now defunct ID card all carry the same identification number, a very astute move by the Cypriot Authorities.