Bitcoin used to pay invoices - GBP valuations
Options
FoxyFoxy
Registered Posts: 4 New contributor 🐸
Hi All, hope everyone is coping ok this week!?
A new one on me - may I ask for some thoughts on the process?
A client issues invoices each month to Joe Bloggs, for $2000. Normally, I use HMRC exchange rates to value invoice and receipt to the USD bank. However, my client has now opened a Bitcoin account, and Joe Bloggs is paying into this account.
My client sends me a CSV from the BTC account, which lists:
Date of transaction
Amount - which I think is the number of bitcoins received
Value then - which is a USD figure, presumably on date of txn (this doesn't change)
Value Now - again, a USD figure, presumably at todays value (this fluctuates)
Exchange Rate (USD/Bitcoin)
I have an $2000 October invoice on Sage, valued in GBP, using the HMRC ex rate.
I am now considering how to pay it off, in November.
I can see that $1970 is the "value then" dated 05.11.21 - so, to my mind, this must be considered the sales receipt.
The "value now" of this $1970 fluctuates daily. I feel that is a separate issue, more akin to share fluctuations, that would have to be adjusted on the BS, at year end.
Would one consider it fair to convert this $1970 to GBP using HMRC USD ex rate? And then perhaps, writing off the $30 underpayment as a bank fee or ex rate difference?
I cant think of any other logical way to do it? I don't think HMRC do a monthly historical BTC to GBP ex rate list?
My thoughts are to then use the HMRC ex rates to adjust the "value now" fluctuations, which also appear as a USD amount, at the YE.
Anyone else had this issue, or seen any information that might help? Ive looked HMRC's cryptoassets guidance, and various online pages, but cant find what I need.
Massive thanks in advance
A new one on me - may I ask for some thoughts on the process?
A client issues invoices each month to Joe Bloggs, for $2000. Normally, I use HMRC exchange rates to value invoice and receipt to the USD bank. However, my client has now opened a Bitcoin account, and Joe Bloggs is paying into this account.
My client sends me a CSV from the BTC account, which lists:
Date of transaction
Amount - which I think is the number of bitcoins received
Value then - which is a USD figure, presumably on date of txn (this doesn't change)
Value Now - again, a USD figure, presumably at todays value (this fluctuates)
Exchange Rate (USD/Bitcoin)
I have an $2000 October invoice on Sage, valued in GBP, using the HMRC ex rate.
I am now considering how to pay it off, in November.
I can see that $1970 is the "value then" dated 05.11.21 - so, to my mind, this must be considered the sales receipt.
The "value now" of this $1970 fluctuates daily. I feel that is a separate issue, more akin to share fluctuations, that would have to be adjusted on the BS, at year end.
Would one consider it fair to convert this $1970 to GBP using HMRC USD ex rate? And then perhaps, writing off the $30 underpayment as a bank fee or ex rate difference?
I cant think of any other logical way to do it? I don't think HMRC do a monthly historical BTC to GBP ex rate list?
My thoughts are to then use the HMRC ex rates to adjust the "value now" fluctuations, which also appear as a USD amount, at the YE.
Anyone else had this issue, or seen any information that might help? Ive looked HMRC's cryptoassets guidance, and various online pages, but cant find what I need.
Massive thanks in advance
0