Average exchange rate for 2011

[olive]

Paging Cid or other helpful soul. Have done a search but can't find an average Sterling pounds to Euro exchange rate for use in Renta calculations. I am looking for the period January 2011 to December 2011.

Anyone know what it was please?

olive

[anyroads]

1.15 you cant go wrong.....

anyroads

[El Cid]

It's 1.1523

Sid

[olive]

Thanks for that. Makes 1.25 today look good!

[El Cid]

You won't be so happy with your tax bill next year if it stays up there!

Sid

[gerryh]

OK, so I pay more tax but it is because I get more Euros to the pound.
Therefore I win and the Spanish tax man wins.
Cheers
Gerry

[El Cid]

I prefer the scenario where I win and he loses!

I'm working on it!

Sid

[Parilla]

When you've worked it out, let us all in in the secret Sid.
Parilla

[anyroads]

"It's 1.1523"

But it only took me 1 second to work out 1.15 !!

anyroads

[El Cid]

"It's 1.1523"

But it only took me 1 second to work out 1.15 !!

anyroads

Good for you! I just looked up the official figure.

Sid

[gerryh]

This has left me in a bit of a quandary.
Do I use the official figure of 1.1523 or anyroads figure of 1.15 and save myself a bit of tax?
Will the taxman notice that I am cheating him out of some tax?
Cheers
Gerry

[El Cid]

This has left me in a bit of a quandary.
Do I use the official figure of 1.1523 or anyroads figure of 1.15 and save myself a bit of tax?
Will the taxman notice that I am cheating him out of some tax?
Cheers
Gerry

It's up to you to submit your income in Euros. How you arrive at that is down to you - you do not have to produce any evidence of your income or the rate you used to convert it to Euros.

In the extremely unlikely event that they decided to do a check on your returns then, yes, you would have to justify what you had declared.

If you declared a very significantly lower income than in previous years it is just possible that it might trigger an investigation but foreigners income can be very variable for lots of reasons so I doubt it.

They have much bigger fish to fry than a few poor old UK pensioners who at least (unlike many Spanish) make a tax declaration.

Personally I declare the actual amounts in Euros paid into my account from pensions - that makes it simpler and cases where there is a small charge at the UK end it gets absorbed. Also even with the UK state pension it is probably converted slightly below the market average so declaring what ends up in your account in Spain seems a simple approach to me and very defensible should the need arise.

I only apply the average rate to any payments into my UK account. As they are the same every month I apply the average rate. If there are variable amounts I apply the rate on the day they were paid.

Sid