UK deposit interest calculated using yearly average GBP to EURO exchange rates

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BlueHorseShoe

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When calculating UK deposit interest can you use average GBP to EURO exchange rates for the year - or the specific rate on the day you received the money ?

This can be quite admin heavy if getting monthly interest from multiple sources
 
Is the amount being received in a Euro account ? If so, use the actual amount received

If not, then you should use the exchange rate on the date the interest is received.
Revenue publish average exchange rates for each month and year,https://www.revenue.ie/en/customs/businesses/importing-exporting/exchange-rates/index.aspx so if you use those, you won't get into any major trouble - I presume the amounts are small so the movement in the GBP/EUR rate won't be material
 
jpd said:
Is the amount being received in a Euro account ? If so, use the actual amount received

If not, then you should use the exchange rate on the date the interest is received.
Revenue publish average exchange rates for each month and year,https://www.revenue.ie/en/customs/businesses/importing-exporting/exchange-rates/index.aspx so if you use those, you won't get into any major trouble - I presume the amounts are small so the movement in the GBP/EUR rate won't be material
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Its received in GBP - I thought the same as you but Revenue publish annual yearly exchange rates and I have seen people mention this can be used for DIRT calculations of UK deposit interest
example

Revenue eBrief No. 068/23

Annual average exchange rates and Lloyds sterling conversion rates
www.revenue.ie www.revenue.ie
 
Use them - in 2023 - the exchange rate, which one - opening, close, day high. day low - moves all the time but is relatively stable over 12 months
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Yes, honestly, it will hardly make much difference using an average rate than the actual daily rate unless we are talking millions of euros on deposit and thousands of euros interest

Revenue are not going to come after you for a few tens of euro
 
Our accountant has been using the Revenue annual average rate for my UK sterling pension and deposit income for years. I assume that's partly the reason they publish them.
jpd said:
Yes, honestly, it will hardly make much difference using an average rate than the actual daily rate unless we are talking millions of euros on deposit and thousands of euros interest.
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In fact with last year's high UK deposit rates it wasn't difficult to earn thousands of interest on just a fraction of a million. But that shouldn't make any difference as most deposit interest accrues gradually over the 12 month period.
 
mct1 said:
Our accountant has been using the Revenue annual average rate for my UK sterling pension and deposit income for years. I assume that's partly the reason they publish them.


In fact with last year's high UK deposit rates it wasn't difficult to earn thousands of interest on just a fraction of a million. But that shouldn't make any difference as most deposit interest accrues gradually over the 12 month period.
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yes probably not much difference - I will use the annual rates published by revenue as its just much easier than working it out month by month
 
Really?

Taking 12 figures and multiplying by another 12 and adding the results doesn't seem that difficult
 
jpd said:
Really?

Taking 12 figures and multiplying by another 12 and adding the results doesn't seem that difficult
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The alternative is to work out the GBP/EUR rate the day you received the money - googling that is laborious especially as I also have multiple sources of GBP interest hitting accounts on different days each month - being able to total all interest and multiple by an annual rate is preferable
 
The annual rate is perfectly fine and much easier to use. But if you were inclined to use Google Sheets it can also pick up the daily exchange rate for you.

=GOOGLEFINANCE("CURRENCY:GBPEUR","price",DATE)
 
Corola said:
The annual rate is perfectly fine and much easier to use. But if you were inclined to use Google Sheets it can also pick up the daily exchange rate for you.

=GOOGLEFINANCE("CURRENCY:GBPEUR","price",DATE)
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That is really nice function - very impressive

That said I noticed when checking last years rates =GOOGLEFINANCE("CURRENCY:EURGBP", "price", DATE(2023,1,1), DATE(2024,1,1), "DAILY") and averaging the whole column that it differed from Revenue's Annual published rates on their website - its possible the source or the determination of the daily closing price differs
 
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